Treasury admits government-to-government deal with Gulf oil companies a flop
Scroll down to read the article
A vessel offloads fuel at Kipevu Oil terminus within the port of Mombasa in this picture taken on November 13, 2019. The oil import system meant to cure the dollar shortage has hit headwinds.
Kenya intends to exit agreement in December as deal has had opposite effect.
The oil import system meant to cure dollar shortage has hit headwinds as it created distortions in the currency market.
The oil supply deal Kenya signed with three State-owned Gulf companies last year to tackle challenges related to the scarcity of dollars has failed to ease the foreign exchange pressures on the country as expected, the Treasury has admitted. In disclosures to the International
Monetary Fund (IMF), the Treasury said the government intends to exit the arrangement under which the country imports oil over a credit period in December, citing the distortions it has created in the forex market.
