(Ecofin Agency) - In Kenya, Kenol Kobil has signed an agreement with Castrol, a British industrial and automotive lubricant manufacturer regarding the construction of a $15 million lubricant factory in Mombasa.

According to oil marketer, the collaboration is the most economical option when compared to importing the product from South Africa, where Kenol Kobil usually gets the commodity from.

“The Castrol head office has approved the budget and the project is due to commence,” David Ohana, Kenol Kobil’s CEO told African Business Communities.

Construction works on the plant is expected to commence by mid-2017 and Ohana has said that the factory will have a per month output of 1,000 tonnes of lubricants. The factory will also increase the company’s portfolio in the local petroleum sector.

The Castrol brand of lubes in Kenya is owned by BP South Africa. The company also operates a small lubricant plant in the country. This plant produces a 600 tonnes per month quantity of Castrol’s lubricants.

Anita Fatunji