Tuesday, July 21, 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.”

Anti-Corruption

Agricultural firm Scoular to pay over $10 million to resolve foreign bribery case

Scoular employees communicated about shipments and bribes. In total, Scoular authorised bribes of more than $400,000 and avoided fees and costs of more than $6.5 million.

States

FRSC mobilises stakeholders against overloading in Sokoto

The zonal commanding officer in charge of Zone 10, Shaba Bariam-Akanbi, inaugurated the three-day exercise on Monday in Sokoto.

Africa

ECOWAS approves appointment of new officials

The Economic Community of West African States (ECOWAS) has approved new appointments to its strategic statutory positions and specialised institutions for 2026 to 2030.

Accident involving a tipper

States

Two persons killed in Ogun motorcycle, truck collision

Two people died on Monday in a crash involving a motorcycle and a Dongfeng pickup truck at Koto-Ajala, inbound Owode, in Obafemi Owode council area of Ogun.

STOCK MARKET

Economy

Banking, insurance shares lift stock market by N2 trillion

The Nigerian stock market gained N1.756 trillion on Monday, driven by sustained buying in banking, insurance and industrial stocks.

Patients in the hospital

Health

Niger: NiCare enrols 121,000 vulnerable residents in insurance scheme

NiCare chief said the beneficiaries included 80,230 vulnerable persons enrolled in the Basic Health Care Provision Fund Vulnerable Group Programme.