Sharp Daily
No Result
View All Result
Friday, June 27, 2025
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home News

Government Deal to Import Fuel on Credit in Motion

Benson Muriithi by Benson Muriithi
April 20, 2023
in News
Reading Time: 2 mins read
Fuel Shortage Kenya

Photo/Courtesy

Kenya has started receiving oil imports under a new State-backed system designed to alleviate pressure against the dollar, which has worsened the country’s economy for over a year. The deal with three international oil companies is expected to ease the dollar shortage, and the government has requested Kenyans to offload their US dollars to the market to increase demand for the shilling.

The importation deal will enable the country to purchase USD500m of fuel every month, which will reduce the demand for the dollar, making the shilling stronger.

Three oil firms, Saudi Arabia Oil Company, Abu Dhabi National Oil Company, and Emirates National Oil Company, will supply petroleum products on credit for nine months, with an extended credit period of six months. However, fuel prices will not be lowered, and oil marketers have raised concerns about the cost that will come with the extended credit period.

Also Read: Kenyans to have Stable Supply of Oil after the New Import Deal

RELATEDPOSTS

EPRA announces fuel price drop for December

December 16, 2024

Government launches new program to connect 1 million youth with jobs each year

October 30, 2024

The Kenyan government admits that the new system may not directly affect lowering pump prices, but it maintains that it will stabilize the shilling, whose volatility has triggered a cost-of-living crisis in the import-dependent economy.

During the credit period, oil marketers will pay for products using the shilling instead of the dollar, reducing the pressure on foreign exchange reserves.

The new deal is expected to reduce the demand for dollars, which is driven by petroleum imports by extending the time required to source for dollars from five days to 180 days. The local oil industry requires USD500m every month to buy approximately 740,000 metric tonnes of fuel.

According to State officials, shifting the dollar settlement to oil-importing companies makes it easier to plan for the purchase of dollars in a manner that does not destabilize the market.

Email your news TIPS to editor@thesharpdaily.com

Previous Post

Africa Has a Promising Energy Resources

Next Post

John Ngumi: Man Who Received Ksh. 415mn in Telkom Deal

Benson Muriithi

Benson Muriithi

Related Posts

News

Private vs Public Pension Funds in Kenya

June 27, 2025
Investments

Investor shift to long term bonds drives oversubscription in CBK’s reopened auction

June 19, 2025
News

The real price of Israel – Iran Conflict for Kenya.

June 19, 2025
Economy

Resilient but strained: Kenyan firms speak out in May 2025 CEO survey.

June 19, 2025
News

Co-op Bank posts KES 6.9 billion profit in Q1’2025

May 16, 2025
Agriculture And Economy
News

Lets get Kenya out of FATF list

May 9, 2025

LATEST STORIES

Private vs Public Pension Funds in Kenya

June 27, 2025

The mechanics of currency manipulation

June 27, 2025

Understanding how to access your pension savings in Kenya.

June 27, 2025

What happened to president Ruto’s economic dream?

June 27, 2025

Opinion: Populism feeds votes, not growth

June 27, 2025

Competitive advantages of small businesses

June 26, 2025

Opinion: Invest in sports for national prosperity

June 26, 2025

Ethiopia’s access to Eritrean ports is a game-changer for trade

June 26, 2025
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024