Kenya Signs Another G-to-G Oil Importation Agreement With 4 Companies
President William Ruto’s administration has renewed its arrangement with three Gulf businesses to import fuel on credit for the next two years as part of the Government-to-Government (G-to-G) oil contract.
According to Bloomberg, the Energy and Petroleum Regulatory Authority (EPRA) Director General, Daniel Kiptoo, stated that the three companies would continue to sell gasoline, diesel, kerosene, and jet fuel under a 180-day credit plan.
However, Kiptoo stated that Kenya will activate the agreement by the end of the year, once the government had completed importing the remaining oil consignment obtained under the prior agreement.
He explained that the delay in transporting the remaining oil consignment into the nation was caused by Uganda’s choice to source its petroleum directly after terminating its earlier agreement with Kenya.
While expressing support for the accord, the EPRA chief stated that the importation of oil under the G-to-G agreement helped stabilize the shilling against key world currencies, including the US dollar.
Delighted to present key insights from the Energy and Petroleum Statistics Report (July–December 2024), highlighting Kenya’s strides towards a sustainable, efficient, and data-driven energy future.
— Daniel Kiptoo Bargoria (@EpraDg) March 27, 2025
At EPRA, we remain committed to fostering innovation, transparency, and regulatory… pic.twitter.com/oRscGmYvdK
“The plan has helped stabilize the currency. It also gives us security of supply, even in the event of supply shocks. The structure is working, and even other countries are coming to Kenya to replicate it,” Kiptoo said.
“Freight and premium costs will drop by 11 percent to Ksh10,068.24 per metric ton of diesel, 7 percent to Ksh10,842.72 for gasoline, and 13 percent to Ksh12,520.76 for jet fuel,” he added.
“Prices for the products are based on the S&P Global Platts benchmark.”
According to figures from the Central Bank of Kenya (CBK), the local currency has risen by 17% since its inception, with the local unit now trading at an average of Ksh129 against the greenback.
Kiptoo further emphasized that the G-to-G oil deal had significantly helped local companies that import petroleum.
ALSO READ:
- “After Careful Consideration …!” – Mt Kenya Governor Ditches UDA After Ruto’s Visit
- Skydiving Plane Crash Lands In Diani, Company Confirms
- “This Is What Happened!” – Orengo Reveals Events Leading To Chaos At MP Nyikal’s Father’s Burial
- Nigeria’s Tinubu To Visit Kenya Weeks After Viral Fuel Shortage Comparison Remarks
- CS Murkomen Confirms Kamariny Stadium Will Host 2026 Mashujaa Day
This is because they no longer need to use scarce foreign currency when purchasing oil on the international market.
Kenya traditionally sold fuel products to Uganda, but it currently exports fuel to other landlocked countries such as the Democratic Republic of the Congo (DRC), Rwanda, South Sudan, and Burundi.
Kenya has renewed its oil arrangement with the three corporations for the second time as part of the government’s macroeconomic stabilization policy.
The agreement, which was initially announced in April 2023, signified a departure from the former open tender system, in which local enterprises competed to import oil every month.
Kenya Signs Another G-to-G Oil Importation Agreement With 4 Companies
