Fuel crisis looms as RUTO’s controversial deal with Saudi Arabia for the importation of fuel expires – Look!

Monday, December 16, 2024 – Kenya faces a potential fuel shortage as the government-to-government deal with Saudi Arabia for fuel imports nears its expiry in two weeks, with no replacement deal in place.

Under the deal, the Government of Kenya entered into oil importation deals with other fuel-importing companies from the Gulf state to supply Kenya with the products on credit.

This was particularly to ease the pressure on the Kenyan Shilling which had suffered shocks as a result of the global dollar shortage.

Initially, Kenya used to import fuel products and pay instantly to the suppliers. However, since the government-to-government agreement took effect, the country has been able to purchase the products on credit.

However, Energy Cabinet Secretary Opiyo Wandayi refuted the claims of a likely crisis in the fuel sector, revealing that deliberations are in high gear to address the issue.

Wandayi added that there will be an interministerial conference that will meet and deliberate on the matter.

According to the CS, the conference headed by the Minister for Treasury John Mbadi will then issue a joint statement on the government's steps.

This is even after it emerged that the government is yet to strike another importation deal with only a fortnight to the expiry of the current agreement.

He maintained that the government was however proud that the deal helped reduce the fuel prices across the country.

The landing cost of fuel products has been comparatively low since the government started the new importation deal.

The Kenyan DAILY POST