Kenya receives 160,000MT of fuel on credit ahead of price review
Kenya’s first consignment of fuel import under the government-to-government procurement plan from the Middle East has landed into the Port of Mombasa ahead of the April to May monthly price review that is expected today.
Last month, Kenya adopted a new scheme to start importing fuel, which currently accounts for about 30 percent (about $500 million) of the country’s total dollar requirements, on credit thereby extending the the time required to source for USD from the current five days upon receipt of cargo to 180 days.
Energy regulator says the new framework will also increase Kenya’s forex reserves, and in turn decrease currency speculation in the markets while at the same time revamping the country’s dormant interbank market.
Energy CS Chirchir said: “We hope this will stabilise the shilling. The pressure is already being eased. We hope the dollars will be performing to other sectors of the economy.”
The Kes20 billion consignment delivered by two ships MT Front Capella and MT Norddolphin included petrol, diesel and jet A-1 fuel used in the aviation industry.
