Revealed: Why State is stepping back from gulf fuel import scheme
National Treasury and Economic Planning Cabinet Secretary Njuguna Ndung’u addressing participants during the launch of the Budget Preparation process for FY 2024/2025 and the Medium-term at the Kenya School of Monetary Studies, Nairobi on August 18, 2023.
Kenya will take a step back from the government-backed fuel import credit scheme negotiated with gulf nations after the International Monetary Fund (IMF) expressed concerns that taxpayers might be exposed to currency-related costs.
Treasury Cabinet Secretary Njuguna Ndung’u said that the government would step back to allow private sector players, including oil marketing companies (OMCs), banks, and credit insurance providers, to run the scheme.
Prof Ndung’u, however, said the government had explained to the IMF staff who visited the country for reviews of credit and funding facilities that the scheme was a trade finance arrangement which had no risks to the Kenyan government.
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