Monday, August 31, 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.”

Recovered toy pistol

States

Police arrest 19-year-old for attempted robbery in Katsina

The police command in Katsina says it arrested a suspect in connection with an armed robbery in Kofar Sauri. The suspect, Aliyu Sani, was accused of robbery and impersonation.

Governor Abba Yusuf of Kano State

Politics

Committee to develop people-centred blueprint for Gov Yusuf’s second term

The Abba Kabir-Yusuf Campaign Blueprint Development Committee has pledged to produce an inclusive, people-centred policy document for the Kano governorship election in 2027.

Bandits with RPG

States

Three persons killed, five injured in Chiromawa bandit attack

Three people have been killed and five others injured when suspected bandits attacked the Chiromawa community in Garun Mallam council area of Kano on Saturday.

Hannatu Musa Musawa pays condolence visit

Showbiz

Culture minister Musawa visits Ogogo’s family

Minister of Art, Culture, Tourism and Creative Economy, Hannatu Musa Musawa, paid a condolence visit to the family of Taiwo Hassan, aka Ogogo.

Bandits

States

Bandits kill six people in Sokoto

At least six people were killed and others injured in Gandi village of Rabah council area of Sokoto following a bandit attack on farmers.

Kudzai Gumunyu

Opinion

Nigeria cannot solve its food crisis with old banking models

The problem is not a lack of entrepreneurial ambition or productive capacity. It reflects a mismatch between traditional banking models and farming realities.