Kenya Defends G-to-G Fuel Import Deal Amid Dollar Pressures

The Kenyan government has defended its G-to-G fuel importation arrangement, introduced in 2023 to address an acute shortage of US dollars that threatened fuel and other essential imports.

Energy Cabinet Secretary Opiyo Wandayi said the deal has helped protect fuel supplies, reduce pressure on foreign exchange reserves, and support stability in the Kenyan shilling since its inception.

The government entered into Master Framework Agreements with Aramco Trading Fujairah FZE, ADNOC Global Trading Ltd, and Emirates National Oil Company (ENOC) Singapore Private Limited to supply refined petroleum products on 180-day credit terms.

Under the arrangement, fuel supplied to the Kenyan market is paid for in Kenyan shillings and backed by 180-day letters of credit. The government says this has eased demand for dollars and enabled Kenya to accumulate additional foreign exchange reserves of about $500 million (about Sh64.7 billion) each month.