President William Ruto’s Cabinet has approved the extension of the government-to-government (G2G) oil importation deal Kenya signed with Gulf companies.
In the deal, Kenya signed an arrangement with other fuel companies in the Gulf, such as Saudi Arabia, to supply the country with refined petroleum products on credit.
Kenya would then make payments in Kenyan shillings, rather than in United States dollars, previously estimated at $500 million a month.
In a meeting held on Tuesday, December 17, at State House Nairobi, the Cabinet chaired by Ruto resolved to extend the deal saying the arrangement has eased the monthly demand for US dollars for petroleum imports.
This has, in turn, stabilised the shilling-dollar exchange rate at KSh 129 from a high of KSh 166 and reduced pump prices from KSh 217 per litre of petrol to KSh 177.
