Kenya: Questions emerge as government changes oil import rules

By Herald Onyango

Posted on Thursday, 16 March 2023 18:16
FILE PHOTO: An employee pumps fuel into a car at a Shell petrol station in Nairobi, Kenya, September 20, 2018. REUTERS

William Ruto’s administration has altered oil importation processes in Kenya by turning to a government-to-government (G-to-G) arrangement to minimise pressure on the East African country’s declining foreign exchange reserves. Will the move pay off?

Under the new agreement, which is a deviation from the Open Tender system (OTS), the oil will be imported this month on credit terms between six months and a year to avert a dollar crunch. Under the OTS, the winning Oil Marketing Company (OMC) would import fuel on behalf of all players and sell it to them per their market shares.