Ecobank moves to recover Sh5b from distressed fuel marketer

Hashi Energy Chief Executive Mohamed Adan. [Wilberforce Okwiri, Standard]

The planned auction also indicates that even large multinationals are not spared the financial headwinds in an economy that has witnessed a slowdown.

Banks have stepped up debt recovery efforts to clean up their loan books, leading to a spike in property seizures by lenders.

Hashi Energy started out as a kerosene distributor for oil marketer Chevron Kenya (then known as Caltex Oil Kenya) using jerry cans to supply Rwanda and DRC Markets.

In the mid 90's the company acquired depots in western Kenya to better serve the local market as well as the export market within East and Central Africa.

The company rebranded itself to Hashi Energy in 2008, with the core business being the importation, distribution, and marketing of petroleum products.

"It has been impressive watching the company grow from nothing to becoming one of the leaders in the provision of energy solutions in Africa," Mr Hashi said in an interview in 2011.

"We started with three employees and now we have 300 employees with offices across the region. The company today is worth $50 million."

The company would later expand its activities further by venturing into various geographical locations, as well as increasing the portfolio of services and products to include remote logistics, engineering and food supply.

Ecobank is seeking to sell properties owned by Hashi Energy to recover a Sh5 billion debt. [iStockphoto]

"At Hashi Energy Group we pride ourselves on being the first indigenous African company to have won a prestigious United Nations fuel supply contract in the Democratic Republic of Congo in 2015 and we have continued to grow our clientele in governments, NGOs and the private sector," says the company on its website.

As of 2017, Hashi was ranked the seventh-largest oil marketer in the country.

The company was ranked higher in regional sales at the fifth position ahead of the former OiLibya, (OLA Energy), Nock and Petro.

In 2017, Tanzania's energy firm Lake Oil announced plans to acquire the petroleum retail business of Hashi Energy.

Hashi's exit from the petroleum retail business came soon after the company signed a Sh14 billion deal with Dubai's SS Lootah to venture into the supply of food to military personnel and non-governmental organisations in the DRC.

The venture was to involve building infrastructure and storage facilities for food and fuel supplies.

Hashi Energy had pre-existing contracts with the United Nations mission in DRC for transporting and storing petroleum products.

Besides its bulk petroleum distribution business in the local market including the sale of fuel to airlines, Hashi also had a presence in logistics, solar products distribution and mining.