Treasury has said that the government would back down on a fuel import credit scheme it had entered with the gulf countries.
Treasury CS Njuguna Ndung’u said the government would instead allow private sector players, including oil marketing companies, banks, and credit insurance providers, to run the scheme.
The decision followed concerns by the International Monetary Fund (IMF), that Kenyans would bear the burden of currency related costs.
The agreement was meant to ease pressure on the forex demand and help prop the battered shilling by delaying payments for six months besides allowing local firms to pay the three fuel importers in shillings.
kuna elders hapa walikuwa wanasema eti kenya inanunua mafuta in kenya shillings, wakuje wapeane maoni yao hapa, kwani kenya haina kenya shillings tena?
serikali ikifanya vitu za upuzi ikosolewe, hapana support sarakasi za akina moses kuria
Selection of Gulf Energy as the sole importer instead of engaging all the oil importers and marketers.
JSKS’s many foreign trips to Paris.
Failure to involve local banks and instead using CBK to underwrite guarantees hence including them in the national debt register.
Ignoring clear knowledge of the hug trade imbalance between Kenya and Saudi, therefore any possibility of a currency swap is not possible.
The 6 months LCs meaning huge accumulation of dollar denominated debts that pts enormous pressure on the shilling once they mature. The LCs were not cushioned against exchange rate fluctuations.