Galana Oil Kenya recently secured a Sh2 billion contract to supply diesel for three geothermal projects over the next two years.
Galana Oil Kenya, a local energy company, is turning heads in Kenya’s oil market by beating multinational giants to major government fuel contracts.
The firm recently secured a Sh2 billion contract to supply diesel for three geothermal projects over the next two years, extending its growing dominance in lucrative state fuel supply deals.
Procurement disclosures show that the Geothermal Development Company (GDC) awarded Galana the contract to supply diesel to the Suswa, Menengai, and Baringo-Silali projects from July 8 this year to August 6, 2027.
Although geothermal energy is clean, diesel is critical to getting the projects running, especially during drilling, testing, and early-stage operations. Galana had already been supplying diesel — technically known as Automotive Gas Oil (AGO) — for the three projects under a 15-month deal worth Sh1.15 billion that ended in December 2024. This is an enhancement of the contract, which had wetted the appetite of other major energy companies, including multinationals.
High-value contracts
Beyond geothermal, Galana has secured other high-value contracts, positioning the local firm as a serious competitor to multinational marketers in Kenya.
It is also a key participant in the Government-to-Government (G2G) fuel programme, launched in 2023 by the William Ruto administration to ease foreign-exchange pressures. The G2G scheme allowed Galana to rapidly scale its volumes, helping it secure large state fuel lots such as GDC geothermal contracts.
In March 2023, Galana was among two companies awarded a multi-billion-shilling contract to supply 38 million litres of diesel valued at Sh6.2 billion to the Standard Gauge Railway’s passenger and cargo locomotives, according to a challenge against the tender by Vivo Energy at the Public Procurement Administrative Review Board (PPARB).
The tender attracted eight top oil marketers: Galana, Dalbit, Rubis Energy Kenya, Hass Petroleum, Trinity Energy Kenya Limited, Total Energies Marketing Plc, Vico Energy Kenya, and One Petroleum Limited. Besides Galana, Kenya Railways Corporation recommended Dalbit to supply diesel to its Mombasa Port Reitz depot at prevailing Energy and Petroleum Regulatory Authority (EPRA) prices, with a discounted rate of Sh5 per litre.
Founded in 1993 by the late billionaire James Gachui, Galana is among indigenous firms that have increasingly challenged multinationals such as Total, Vivo, and LibyaOil. Business registry records show Galana Oil Kenya was registered on June 7, 2000, and is owned by three firms: Sai Ram Investment Company (1,576 shares), Romichi Company (1,576 shares), and Tapiola Limited (1,598 shares).
Finance oil imports
Romichi is majority-owned by Joseph Gitau Mburu with 490 shares, while Rose Wamuyu Gitau, Wanjiku Gitau, and Wairimu Gitau each hold 170 shares. Tapiola is owned by Georger Ngige Kahira (70 shares), Jennifer Wariara Ngumi (15 shares), and Grace Wanjiru Ngige, Melissa Wanjiku Ngige, and Jonathan Kahira Ngige each hold five shares.
Records also show Galana took a $13.84 million (Sh1.6 billion) loan in December 2021, likely to finance oil imports.
In the first quarter of 2025, Galana and other local oil firms increased their shares in market weakening the dominance of the top three marketers, according to the Petroleum Institute of East Africa. Galana’s market share rose to 2.97 per cent from 2.63 per cent, while Stabex increased to 2.62 per cent from 2.37 per cent. Galana Oil also runs the Delta brand of retail stations and the Delgas brand of liquefied petroleum gas, positioning it to compete strongly in the retail fuel market.
The Sh2 billion deal is a major boost for the firm which is competing against well-established multinational marketers.
Diesel is mainly used to power heavy drilling rigs, pumps, and other equipment needed for well drilling. It is also essential for powering construction camps, particularly in areas not connected to the national grid. In the Menengai Project, GDC contracted Globeleq (UK), Sosian Energy (Daniel Moi family), and Ormat Technologies (US), each to set up a 35MW plant. Sosian Energy has already completed its plant.
The Baringo-Silali Project is jointly funded by the Government of Kenya and the German Development Bank (KfW) to develop geothermal wells in Paka, Korosi, and Silali, where 15 to 20 wells are expected to be drilled.
Geothermal energy has steadily become Kenya’s largest source of electricity, transforming the country’s energy mix over the past decade. Its contribution to the national grid rose from less than 13 percent in 2010 to more than 45 percent of installed capacity, according to EPRA. This growth has been driven by massive public and private investments in fields such as Olkaria, Menengai, and Baringo-Silali, alongside projects led by GDC and KenGen.
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