Sunday, September 20, 2026

Kenya to start buying petroleum products with Kenyan shillings

Oil marketers will also start paying for goods with shillings rather than dollars, as has been the practice.

• March 27, 2023
William Ruto
William Ruto

In an effort to combat the country’s continuing dollar shortage, the Kenyan government has signed an agreement with three international oil companies that will allow the African nation to purchase oil using Kenyan shillings.

Due to the dollar shortage, which the government is trying to address, businesses that import goods for their operations—including oil marketers and manufacturers—have been forced to pay more for dollars than the official average exchange rate set by the Central Bank of Kenya.

Kenya signed an agreement for the supply of petroleum products on credit for nine months, with an extended credit period of six months, with the Saudi Arabian Oil Company (Saudi Aramco), the Abu Dhabi National Oil Company (Adnoc), and the Emirates National Oil Company (Enoc).

Every month, Saudi Aramco will provide two diesel cargoes; Adnoc will provide two additional cargoes of diesel and one additional cargo of dual-purpose kerosene, and Enoc will deliver three cargoes of super petrol.

The companies will choose local oil marketers to manage the importation and collection of funds, which will then be paid after the six-month credit period has expired.

The credit period is anticipated to decrease demand for the U.S. dollar and ease pressure on foreign exchange reserves, which are at their lowest levels in more than a decade. Oil marketers will also start paying for goods with shillings rather than dollars, as has been the practice.

Previously, the local Kenyan oil industry required approximately $500 million (Sh64 billion) monthly to purchase about 740,000 metric tonnes, with oil marketing companies having to pay importers in U.S. dollars.

We have recently deactivated our website's comment provider in favour of other channels of distribution and commentary. We encourage you to join the conversation on our stories via our Facebook, Twitter and other social media pages.

More from Peoples Gazette

farmers

Agriculture

FG tasks ECOWAS on leveraging financing strategies for agroecology

The federal government has urged stakeholders in the agriculture and finance sectors in the West Africa region to leverage financing strategies to enhance agroecology practices

Katsina State

Politics

Katsina youths pledge to deliver over 2 million votes to Atiku

“Katsina State is Atiku’s political base because it is his second home.”

Labour Party (LP)

States

Labour Party won’t participate in Oyo LG elections, says secretary

The party’s state general secretary, Fatai Ojetunde, said LP had participated in previous elections without seeing tangible outcomes.

Department of State logo and travellers waiting in an airport lobby

Heading 1

U.S. issues travel advisory to Americans over Iran-Middle East conflict

“Americans outside the Middle East should seriously reconsider travel to and through the region,” a Department of State travel advisory said.

skating

Lagos

LASTMA warns against skating on public highways

The General Manager of LASTMA, Olalekan Bakare-Oki, said such practices expose users to grave and entirely avoidable traffic hazards.

Tractors on farm

Agriculture

Ekiti LG to aid young farmers with mechanised equipment

Mr Omojola said the aim was to empower young farmers through mechanised farming, create jobs, and boost food production.

Tinubu and Gov Uba Sani

Economy

Tinubu To Govs: Emulate Uba Sani on Kaduna mass transit scheme

The president said subnational governments need such interventions to reduce transportation costs and ease pressure on households.

Vice President Kashim Shettima

Heading 3

UNGA81: Shettima leads Nigeria’s delegation to New York

Mr Shettima will deliver Nigeria’s national statement at the event scheduled for September 22 to 28.