Ruto’s Cabinet Makes Final Decision on G to G Fuel Deal
The government has approved the extension of the government-to-government petroleum sourcing arrangement with Saudi Arabia.
The decision came following a Cabinet resolution following a meeting held on Tuesday, December 17, at State House Nairobi chaired by President William Ruto.
The Cabinet cited that the government-to-government deal has helped stabilise fuel prices in Kenya.
This means that Kenya will continue to access the supply of refined petroleum by allowing payments in Kenya Shillings, previously estimated at $500 million (Ksh65 billion) a month.
Sauudi Aramco, Abu Dhabi National Oil Corporation (ADNOC), and Emirates National Oil Company (ENOC) will continue importing petroleum products into the country on behalf of the government.
Meanwhile, the Cabinet also approved the procurement of Liquefied Petroleum Gas (LPG), Heavy Fuel Oil, and bitumen through a centrally coordinated bulk procurement system.
This follows Ruto’s announcement on Monday, December 16, directing that LPG procurement be subjected to the Open Tender System(OTS).
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