Shell puts 2 prime Kampala city fuel stations up for sale

Vivo Energy has announced plans to sell two prominent Shell fuel stations located in downtown Kampala.

The company said the properties will be sold on a “where is, as is” basis through an open bidding process. The stations listed for sale are Shell Clock Tower along Entebbe Road and Shell South Street, both situated within Kampala’s central business district.

Under this arrangement, buyers may continue operating the sites as fuel stations or redevelop the land for other commercial uses.

The move comes despite earlier attempts by Vivo Energy to revive operations at one of the locations.

In 2023, the company invited experienced business managers to take over the management of Shell Clock Tower under a dealer-operator model.

Applicants were required to show strong management skills and commit at least UGX800 million to improve the station.

By press time, the company had not explained the reasons for the planned sale or disclosed the value of the properties.

However, sources familiar with the matter say the decision reflects growing operational challenges in downtown Kampala. Heavy congestion in the city centre has made it difficult for fuel stations to operate efficiently. Limited vehicle access and restricted space have reduced fuel sales and daily operations.

The two Shell stations also operate near two other filling stations run by TotalEnergies in the same area.

Industry insiders say fuel stations require easy entry and exit for vehicles as well as enough forecourt space to handle traffic. They argue that the crowded environment in the central business district now makes such operations less viable.

Sources also indicate that the move forms part of a wider strategy by Vivo Energy to adjust its retail network. The company is gradually reducing direct ownership of prime properties while continuing to operate stations through dealers and partners.

Shell runs more than 120 filling stations across Uganda, most of which already operate under the dealer-owner model.

Analysts say selling high-value land in central Kampala could help the company unlock capital. The funds may support the development of larger and more modern stations in fast-growing suburbs where traffic flows are higher and space is available.

Vivo Energy also noted that the sites have strong redevelopment potential due to their prime location and surrounding commercial activity. The land could attract investors interested in retail or mixed-use developments.

The two properties sit in one of Kampala’s busiest commercial areas with strong road connections and existing infrastructure.