Stabilising oil business

Anytime fuel prices go up one woman is always in the spotlight. Sumayya Hassan-Athmani, 37, the Managing Director of National Oil Corporation, has a job which is often like walking a tight rope, writes NJOKI CHEGEShe is the face of the state petroleum marketer and is constantly in the spotlight when fuel prices go up. Sumayya Athmani the managing director of National Oil Corporation of Kenya has managed to put up a brave face despite sharp criticism from the public whenever oil prices rise. New face of Kenya: Sumayya represents the women, youth, Muslims and professionals. [PHOTOS: MAXWEL AGWANDA]As an oil marketer funded by taxpayers money National Oil Corporation is required to stabilise oil prices and offer the best deal to customers. But this has not been the case.She clears the air: "I do appreciate that Kenyans would want a significantly lower price than what we offer. However, this expectation is based on the assumption, that we get subsidies from the Government in form of taxes and levies."She clarifies that National Oil just like any other petroleum marketer pays levies and taxes. "From every litre of fuel we sell at our service stations, about 61 per cent of the pump price accounts for product import cost, 25 per cent is the taxes and levies paid to the Government and other agencies. The distribution costs take another three per cent and the dealer margin of about four per cent. At the end of the day, the actual gross margin that you have as a marketer is probably six to seven per cent. The oil business today is highly capital intensive and the margins are low," Sumayya explains.We pay taxes In as much National Oil is mandated to stabilise pump prices, the company does not get any subsidies or preferential treatment on import costs or even the levies and taxes paid to the Government and other agencies."When you see us dropping the price by two or three shillings, we are sacrificing almost 50 per cent of our profit margin for the benefit of Kenyans. Despite this our shareholders still expect us to remain profitable," she adds.So who is this a laid-back and soft-spoken woman driving National Oil? Sumayya was born in Malindi and raised all over Kenya (Nairobi, Molo, and Mombasa) due to the nature of her father’s job in banking."I come from a close knit family where my parents were always there for us and they instilled priceless values in us," says the second born in a family of four children.She went to Kenya High School and later joined the University of Nairobi for her Bachelors Degree in Law. PLUM JOBDue to constant strikes at the university she opted to pursue her Law degree at the at the University of Lancaster, UK. She graduated in 1994.Afterwards, she went to the University of Bristol (UK) for her Masters in Commercial law.When she came back to Kenya she went to the Kenya School of Law and got admitted to the bar in 1999.Sumayya worked at various law firms before joining the corporate world."I came to National Oil as a legal manager and company secretary. After a while, I got involved in strategy and corporate affairs. I was promoted to deputy managing director. During this time, I also pursued my advanced management studies at the University of Oxford. When the vacancy for managing director arose, I applied and got the position," she explains.National Oil Corporation was incorporated in 1981 under the Companies Act (Cap 486). The company’s main objective then was to coordinate oil exploration (upstream) activities. In 1988 the company was mandated on behalf of the Government to supply 30 per cent of the country’s crude oil requirements that would in turn be sold to oil marketing companies for refining and onward sale to consumers. However after de-regulation of the oil industry in 1994 the company lost that mandate, and had to formulate new survival strategies that saw it’s entry into downstream operations.So what is her role at NOC?"My job is to place National Oil at the heart of the energy sector in Kenya. We have to critically analyse our challenges to find solutions," says Sumayya.This includes expanding the country’s footprint to areas that have no petrol service stations."We want to strategically place our service stations, because energy will always be a key driver to any country’s economy," she explains.VARYING INTERESTSThere are several players and stakeholders with varying interests in the oil industry. So how does she manage all these interests? "When dealing with various stakeholders I make sure they know that they are dealing with me on a value basis. They know that there are things NOC cannot compromise about. Professionalism and accountability are top on our agenda," she reveals.What are the challenges she faces as a young muslim woman heading a male dominated field?To her this is an opportunity to show the new Kenya.THE CHALLENGES"I represent a lot of different dynamics. Many people would relate to me because I am a professional, a woman, a mother, a wife, a Muslim and a youth. I believe when people look at me, they realise that this is a new Kenya. It is no longer about political patronage, but merit and service delivery," she says.Sumayya says her family and faith have been her strong pillars in surving this oil business.RELIGION"Some people have the wrong notion that if you are in the oil industry particularly the public sector, you must be ‘eating’. And if you are not they question you. They ask "What is wrong with you? Why are you not taking advantage?" she shares.This is where her religion has helped her stay focused. FAMILYSumayya is married to Abubakar Athmani and they have two children — an eleven -year-old son and seven year-old daughter.And family is everything to her."I think that my ability to balance my responsibilities as a wife, mother, daughter and sister and MD lies in being able to prioritise and do everything at its own timing," she says.She strives to have quality time with her family every day even helping the children with their homework.She offers: "They are at an age where my presence is more important to them, than material things." Her children know about the nature of her job.Says she, "The other day, my son asked, "Mama have you increased the price of fuel?" and I found that interesting because he is only eleven years old! He made me realise how knowledgeable and sensitive children are."Sumayya takes her responsibility as a mother and wife very seriously."Motherhood and being a wife are crucial areas that I deal with personally. If my children have school sports and parents day I will be there for them. Motherhood and marriage are serious life commitments and I put them first in my list of priorities," she says.

Stabilising oil business

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