The government has taken over full ownership of the Kenya Petroleum Refineries Limited (KPRL) which is based in Mombasa.
The State purchased the 50 per cent stake that was owned by Essar Energy, an Indian firm.
According to The Nation, the government acquired the 50 per cent stake at a cost of Sh500 million, a move that saw it own 100 per cent of the stake of the refinery.
Speaking on Friday at a signing ceremony between the CS and Essar Energy officials in Nairobi, Treasury CS Henry Rotich said the move by the State is aimed at paving the way for the refinery's revival that stalled its activities earlier in 2013, laying off close to 3,000 employees.
“The decision by Essar Energy to sell their stake in the company presented an opportunity which the government of Kenya decided to avail itself of. To this end, the government of Kenya negotiated the terms of the Essar exit and the acquisition of the Essar shares in KPRL for a consideration of $5 million (Sh500 million),” said Rotich.
The energy firm bought a 50% stake of the refinery when it acquired shares worth $7 million from the Shell Petroleum company Chevron Global energy and BP in 2009.