Sunday, July 19, 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.”

U.S. Mission[Credit: X.com]

World

U.S. issues security alert to Americans worldwide as Iran kills two soldiers

The U.S. government issued a warning to all Americans worldwide amid the escalating war against Iran.

President Bola Tinubu (Credit: Presidency)

Heading 3

Tinubu’s scorecard is 139 million Nigerians in poverty; he should resign, not seek re-election: ADC

“The evidence of 139 million people living in poverty and 17 million at risk of starvation is President Tinubu’s scorecard,” the party said.

Flooded Lagos road used to illustrate the story

Lagos

Lagos govt working to tackle flooding, says SSG

She said the government was assessing critical drainage channels and other vulnerable locations to strengthen ongoing flood control measures.

Anambra road crash

States

Three killed, four injured in Anambra road crash: FRSC

The FRSC said the accident occurred on Friday along the Nnobi–Agulu–Awka road.

Atiku standing with Amaechi

Politics

2027: Group asks ADC, Atiku to drop Amaechi as vice-presidential candidate

The group accused Mr Amaechi of desperation, saying that he lacked the grassroots strength required to win the election.

Jens Spahn. [PHOTO CREDIT: ZDF]

Heading 4

German lawmaker resigns after backlash for welcoming child through surrogacy

The 46-year-old politician and his party, the Christian Democratic Union (CDU), had backed a ban on surrogacy.