Sharp Daily
No Result
View All Result
Friday, July 11, 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 Business

Kenya extends oil supply agreement to stabilize prices

Kanana Joy by Kanana Joy
April 7, 2025
in Business, Economy
Reading Time: 2 mins read

Kenya has extended its oil supply agreement with Saudi Aramco, Emirates National Oil Company (ENOC), and Abu Dhabi National Oil Company (ADNOC) for two more years. This partnership continues to stabilize fuel prices and guarantee a reliable supply of petroleum products. Since March 2023, these Gulf companies have been supplying Kenya through a government-to-government arrangement.

Energy Cabinet Secretary Davis Chirchir confirmed the extension, stating, “We have renegotiated the terms with our Gulf partners to secure more favorable prices and ensure the deal remains beneficial to all parties involved.” The renegotiated terms include reduced supplier margins, which are expected to ease pump prices. This should provide relief to Kenyan consumers and businesses struggling with high energy costs. President William Ruto described the agreement as a “game changer” for the economy, noting, “This model protects our economy from the shocks of the international oil market and allows us to plan better with more predictable fuel supply.”

The deal includes a deferred payment plan of up to 180 days, helping Kenya reduce immediate pressure on foreign exchange reserves. By extending the arrangement, the government aims to maintain financial stability while exploring strategies to stabilize the shilling and balance payments. The Energy Ministry emphasized that consultations with key stakeholders, including the private sector and regulators, were essential during the renegotiation process. Chirchir added, “We engaged with the private sector and regulators to ensure transparency and inclusivity in revising the contract terms.”

While some industry players argue that the deal sidelines local oil marketers, the government maintains that it benefits the overall economy. Reduced exchange rate volatility and consistent fuel availability are considered vital advantages. The agreement underscores Kenya’s commitment to enhancing energy security and strengthening economic resilience.

RELATEDPOSTS

Bumpy ride for Kenyans as state triples petroleum regulatory levy

February 21, 2024

CS Chirchir appoints REREC and NuPEA Chief Executive Officers

December 20, 2023

Extending this agreement is a crucial step in Kenya’s economic recovery. By collaborating with international partners, the government aims to shield citizens from global fuel price shocks while building a stable financial and energy future. This move highlights Kenya’s proactive approach to securing economic stability and fostering growth.

Previous Post

Budget smart: How CMMF can transform your finances this month

Next Post

New bill in Kenya aims to regulate and tax gig workers

Kanana Joy

Kanana Joy

Related Posts

Economy

How Kenya is future-proofing its economy against illicit finance

July 9, 2025
Business

Del Monte foods files for bankruptcy in USA

July 3, 2025
Analysis

Lessons from the Kuramo-TransCentury fallout

July 3, 2025
Economy

The mechanics of currency manipulation

June 27, 2025
Economy

What happened to president Ruto’s economic dream?

June 27, 2025
Business

Competitive advantages of small businesses

June 26, 2025

LATEST STORIES

Why Employers Should Prioritize Pensions Over One-Time Gratuity Payments

July 10, 2025
Business and Finance Concept - Coin, Currency, Financial Item, Graph,

Opinion: Why lower taxes may be Kenya’s only escape route

July 10, 2025

Nvidia becomes the first company globally to hit USD 4.0 trillion market value

July 10, 2025

Privatization in Kenya: A new dawn for capital markets and fiscal stability

July 10, 2025

How Kenya is future-proofing its economy against illicit finance

July 9, 2025

The importance of Investment Policy Statements (IPS) for pension schemes in Kenya

July 4, 2025

Understanding Life Cover as an Additional Benefit in Retirement Benefit Schemes

July 4, 2025

Del Monte foods files for bankruptcy in USA

July 3, 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