Energy and Petroleum Cabinet Secretary Davis Chirchir. Photo | courtesy.
Kenya has announced the extension of its government-to-government (G-to-G) fuel import deal with Gulf countries.
The move is aimed at maintaining stability in fuel supply and cushioning the country against volatile global oil prices.
The deal, which was initially signed in 2023 for a 24 month period, will now be renewed for an additional term once the current shipments are completed later this year.
It allows Kenya to import petroleum products on a deferred payment plan directly from Gulf state owned oil firms, bypassing traditional open tender systems.
Energy and Petroleum Cabinet Secretary Davis Chirchir confirmed the extension, saying it is part of the government’s broader strategy to manage foreign exchange demand and ensure consistent fuel availability.
“The extension is critical for maintaining the momentum we’ve built in fuel security and exchange rate management,” Chirchir stated.
“We are working closely with our Gulf partners to ensure a seamless transition into the next phase.” he added.
ALSO READ: Musk-led DOGE Cancels Two Other US-funded Contracts In Kenya
The G-to-G arrangement has been credited with easing pressure on Kenya’s forex reserves by allowing payment over six months, rather than upfront.
However, it has also drawn criticism from some, independent fuel importers and consumer rights groups, who argue it limits market competition and transparency.
