Tullow awards contract to Turkana based businesses

TullowTullow on November 13, awarded contracts to 36 companies in Turkana County for the supply of light vehicles, in an initiative to increase the participation of local businesses in the company’s supply chain.
Under the terms of the Ksh 225 million deal, Tullow Oil sourced  for 36 vehicles from Toyota Kenya under a 3-year lease-and-buy contract.

The company then invited bids from Turkana-based companies to operate these vehicles, receiving 60 bids against 36 available slots. Tullow then awarded the 36 companies a vehicle each and immediately leased them back from these local businesses, creating an income stream for local entrepreneurs.
The 36 winning companies are expected to take over the lease and buy rights from Toyota, meaning that at the end of the three years, they will take full ownership of the vehicles.

“We recognized that capital was an obstacle to entrepreneurs wishing to do business with us, so we have structured the deal in a way that the 36-companies will have access to financing of this business opportunity,” said Martin

Mbogo, the Tullow country manager. “Also, at the end of the three years, the companies will take full ownership of
the vehicle,” added Mbogo.
Over the last year, Tullow has embarked on a series of deliberate efforts meant to increase the participation of local companies within its supply chain as part of a wider plan to ensure the oil and gas sector creates long-standing positive impacts on the economies and lives of host local communities where the company operates.
Recently, Tullow facilitated an International Labour Organisation certified (ILO) business training programme for Turkana based women entrepreneurs, through which the women acquired basic business management skills including accounting, book keeping and marketing.
The company has also aligned its procurement process to increase the sourcing of Kenyan manufactured goods by its contractors. “These deliberate efforts sit within our broader plan of creating shared prosperity with host communities and positively impacting the economies where we operate by creating opportunities for local companies to do business with us,” added Mbogo.
Since January, Kenyan companies have supplied goods worth Ksh6 bil-lion to Tullow and its contractors compared to Ksh4.1 billion supplied last year. Turkana based businesses have supplied goods worth approximately Ksh1 billion to date, a 300 per cent rise from the Ksh 224 million they supplied last year. Overall, Kenyan companies now supply more than 80 per cent of all goods and services bought by Tullow and its contractors.
Further, more than 2,300 employees of the total 3,600, or six out of every 10 employees working for Tullow through its various contractors are from the Turkana community. This year, Tullow has committed Ksh 400 million on social investment projects covering health, education, environment and alternative livelihoods in Turkana County.
Tullow has also spent Ksh 150 million through 30 Masters Programme Scholarships offered to Kenyan students, as part of the 2014 TullowGroup scholarship scheme, with plans to spend another Ksh 100 million towards the provision and distribution of seven mobile clinics to Counties across the country through the Beyond Zero campaign. Two of the mobile clinics have already been presented to Turkana and Baringo Counties. –


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