Kenya extends oil deals with Saudi Arabia and UAE

Kenya has extended oil import agreements with one Saudi and two UAE oil companies to ease pressure on its currency, according to media reports.

The deals were initially signed with Saudi Aramco, Abu Dhabi National Oil Company and Emirates National Oil Company in March 2023, offering a 180-day credit period, Business Daily newspaper reported.

Reuters reported that the deals were extended from September 2023 until this month.

Before the deal, Kenya imported fuel through an open tender system, resulting in monthly payments of more than $500 million.

A cabinet statement has confirmed the government-to-government extension to import refined petroleum products, but no timeline was given.

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“This arrangement has eased the monthly demand for US dollars for petroleum imports, stabilising the shilling-dollar exchange rate,” the cabinet said.

As part of the deal, three Kenyan companies are purchasing fuel at fixed premiums of $90 per barrel for petrol and $88 per barrel for diesel, Business Daily reported.