Commodities
Kenya's G-to-G Oil Deal Sparks Controversy Over Middlemen and Fuel Prices
Kenya's government-to-government (G-to-G) oil deal has sparked controversy and debate over middlemen, fuel prices, and who benefits from the arrangement.
The deal was introduced in March 2023 to address a shortage of US dollars and exchange-rate volatility by allowing petroleum suppliers to provide extended credit terms to Kenya.
Kenya entered Master Framework Agreements with three major Gulf suppliers: Saudi Aramco Trading Fujairah FZE, Abu Dhabi National Oil Company Global Trading Ltd (ADNOC), and Emirates National Oil Company Singapore (ENOC).
The G-to-G arrangement changed the timing of payments for petroleum imports, allowing payment over 180 days instead of immediately upon arrival.