* Results reflect falling oil prices
* Local competition also hit margins
NAIROBI, Aug 28 (Reuters) - Total Kenya posted a pretax profit of 55 million Kenyan shillings ($721,500) on Friday for the first half of 2009, down sharply from 903 million a year earlier, due mostly to last year's fall in oil prices.
The oil company, part of French oil giant Total, said turnover for the period had declined to 15.3 billion shillings from 26.2 billion in the same period.
"This year's half-year results reflect the effects of the sharp decline in international crude prices towards the end of 2008," the company said in a statement.
The firm said a drop in local pump prices due to stiff competition in the market also adversely affected the margins at a time when expensive stocks were still being held.
"The results of the second half will largely depend on the stability of the international oil prices and performance of manufacturing, tourism, and agriculture which form part of our major markets for petroleum products," it said.
In May, Kenya gave Total conditional approval to purchase Chevron's Kenya unit.
A gazette notice signed by Finance Minister Uhuru Kenyatta said Total had to sell Chevron's LPG filling centre, a 25 percent stake in a Mombasa-based lubricants blending plant, and several service stations among other requirements.. The firm has 14 months to meet the conditions. (Reporting by Wangui Kanina; Editing by Daniel Wallis and Rupert Winchester) ($1=76.22 Kenyan shilling)