National treasury building in Nairobi/Photo/courtesy

NAIROBI, Jan 20-The National Treasury has dismissed claims over government’s exit of the government-to-government (G-to-G) oil procurement deal terming a planned exit as part of President Ruto’s strategic plan from the onset.

Treasury Cabinet Secretary Njuguna Ndung’u has faulted reports by the media who quoted the recently released report by the International Monetary Fund that alluded to the Kenyan government intention to exit the arrangement prematurely citing forex distortions. 

“The assertion that the government has admitted failure in the G-to-G approach is a gross misappropriation. The quoted text in the IMF report specifically addresses the anticipated increase in rollover risk associated with private sector financing facilities supporting the arrangement,” read the report by the Treasury boss in part. 

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He asserted that the government had set out timelines to respond to market dynamics at the appropriate time.IMF had in its report suggested that Kenya was set to abandon the program, a factor Ndung’u has now dismissed.

” The government intends to exit the oil import arrangement, as we are cognizant of the distortions it has created in the FX market, the accompanying increase in rollover risk of the private sector financing facilities supporting it and remain committed to private market solutions in the energy market,” the IMF wrote in its latest country report for Kenya.

“We commit that all FX conversions done as part of the oil scheme,” reads the IMF report for Kenya.”