By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
sauce.co.kesauce.co.ke
  • Politics
  • Security
  • grapevine
  • Business
  • Entertainment
  • Lifestyle
  • Tech
  • Sports
  • World
  • Media
  • Indepth
  • Sports
Reading: Oil barons lose billions as govt changes fuel tendering system
Share
Notification Show More
Latest News
Kenya’s Lands Ministry Goes Cashless to Curb Corruption Cartels
32 mins ago
Migori county forms special El Nino committee
2 hours ago
Kenya Parliament Urges Shutdown of Worldcoin’s Crypto Project
3 hours ago
Ukraine reacts angrily to Elon Musk’s controversial social media post
3 hours ago
Mudryk scores first-ever Chelsea goal in win over Fulham
3 hours ago
Aa
sauce.co.kesauce.co.ke
Aa
  • Politics
  • Security
  • grapevine
  • Business
  • Entertainment
  • Lifestyle
  • Tech
  • Sports
  • World
  • Media
  • Indepth
  • Sports
  • Politics
  • Security
  • grapevine
  • Business
  • Entertainment
  • Lifestyle
  • Tech
  • Sports
  • World
  • Media
  • Indepth
  • Sports
Have an existing account? Sign In
Follow US
  • Advertise
© 2023 sauce.co.ke. All correspondence to be emailed to info@sauce.co.ke. All Rights Reserved.
BusinessFeatured

Oil barons lose billions as govt changes fuel tendering system

sauce news team 7 months ago
Updated 2023/03/08 at 9:55 AM
Share
3 Min Read
SHARE

Kenya has issued its first oil import tender under a new system designed to cut pressure on the foreign exchange rate by switching to 180-day credit from settlement on delivery, the head of its energy regulator said on Tuesday.

President William Ruto’s government opted for government-to-government oil supply contracts, after the East African nation’s shilling currency tumbled through a series of record lows.

More Read

Kenya’s Lands Ministry Goes Cashless to Curb Corruption Cartels
KRA announces waiver on tax interest for all Kenyans
Kenya’s inflation edges upward in September, due to rising costs across all sectors

“The bids opened yesterday and the government is in the course of reviewing them,” said Daniel Kiptoo, the director general of energy industry regulator, EPRA.

The winner will supply products for nine months, he said, and will be paid every six months.

“By doing that we alleviate the pressure by removing a third of the demand for dollars in the market,” Kiptoo said, referring to oil importers accounting for one-third of monthly demand for hard currency.

The plan was not likely to work since it amounted to just postponing the demand, a foreign exchange trader with a leading commercial bank in Nairobi told Reuters last week.

The previous system was open to all retailers in Kenya, with the winner supplying the industry for two months and paying for the cargo in hard currency within five days of delivery.

The government is targeting Gulf-based oil exporters like UAE’s ADNOC and Saudi Aramco, said Moses Kuria, the minister of trade, in a TV interview.

“We are trying to restructure the way we transact oil between GCC and Kenya so we can ease the pressure on our foreign exchange rate,” he told CNN Arabic.

Local oil firms were not immediately available for comment.

Kenya’s useable foreign exchange reserves have shrunk to less than enough to cover four months of imports of all kinds, which is a statutory requirement. They stand at $6.60 billion or 3.69 months worth of import cover.

Oil prices account for a significant part as international benchmark Brent is above $80 a barrel, even though it has dropped from a peak of $139 in March last year.

Other African nations have also been grappling with foreign exchange shortages. Ghana is negotiating gold for oil deals, traders said.

You Might Also Like

Kenya’s Lands Ministry Goes Cashless to Curb Corruption Cartels

KRA announces waiver on tax interest for all Kenyans

Kenya’s inflation edges upward in September, due to rising costs across all sectors

Why Kenya is facing a debt crisis comparable to Ghana, Greece and Sri Lanka

Treasury CS faces criticism over breach of Sh10tr debt ceiling

sauce news team March 8, 2023
Share
Previous Article Prolonged drought reduces national flower production
Next Article Kenya holds its breath as Raila’s 14 day ultimatum to Ruto expires tonight

LATEST STORIES

  • Kenya’s Lands Ministry Goes Cashless to Curb Corruption Cartels
  • Migori county forms special El Nino committee
  • Kenya Parliament Urges Shutdown of Worldcoin’s Crypto Project
  • Ukraine reacts angrily to Elon Musk’s controversial social media post
  • Mudryk scores first-ever Chelsea goal in win over Fulham
  • Mysterious illness strikes Eregi girls high school: Over 60 students hospitalized
  • UN approves Kenya’s offer to send 1000 soldiers to tackle Haiti gangs
  • KRA announces waiver on tax interest for all Kenyans
  • Tragedy strikes: Woman kills three, including her own baby in Elgeyo Marakwet
  • Is Reign Disick Justin Beiber’s son? Why fans think so
about us

We influence 20 million users and is the number one business and technology news network on the planet.

Find Us on Socials

sauce.co.kesauce.co.ke
Follow US

© Sauce.co.ke | All rights reserved | Send queries to info@sauce.co.ke

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?