The government has recently approved the extension of the government-to-government petroleum sourcing arrangement with Saudi Arabia.
The approval came following a Cabinet resolution after a meeting held on December 17 at State House Nairobi chaired by President Ruto.
”The Cabinet has approved the extension of the Government-to-Government (G-to-G) arrangement for the import of refined petroleum products.”
Cabinet noted that extending the deal was necessary because it has helped ease the pressure on the Kenyan Shilling.
The Cabinet moreover revealed that the government-to-government deal has helped stabilise fuel prices in Kenya.
”This arrangement has eased the monthly demand for US dollars for petroleum imports, stabilising the shilling-dollar exchange rate at Ksh129 from a high of Ksh166 and reducing pump prices from Ksh217 per litre of petrol to Ksh177.”
This means that Kenya will continue to access the supply of refined petroleum by allowing payments in Kenya Shillings, previously estimated at $500 million a month.
The Cabinet however did not give a clear timeline for when the deal extension will expire.
