RUTO extends the scandalous oil deal with Saudi Aramco and UAE Companies despite lying to Kenyans that the deal would reduce fuel prices and stabilize the shilling

 

Tuesday, September 19, 2023 – President William Ruto has extended the scandalous oil deal with three Saudi Arabian companies for one year.

This is despite the deal not living up to its promise of reducing fuel prices and stabilizing the shilling which is on a free fall against the dollar.

Speaking during an interview, Ruto, through the Energy and Petroleum Regulatory Authority (EPRA) Director-General Daniel Kiptoo, noted that the new agreement allows the three companies to supply the oil products on credit until December 2024.

The three companies are Saudi Aramco, Abu Dhabi National Oil Corporation Global Trading (ADNOC), and Emirate’s National Oil Company (NOC).

Since the deal came into force, the first payment amounting to Ksh12 billion is due on September 25, 2023. Another payment of Ksh60 billion will also be maturing by the end of October.

The new deal is likely to attract the attention of the other oil marketers who had been locked out of bidding for the oil until January 2024.

When the deal was signed in March, it was expected to run for nine months with only three local oil firms, Gulf Energies, Oryx, and Galana Oil Kenya Limited, included in the deal.

That meant that three companies were given tender by the government to import the oil for the period, then sell to other marketers.

Other 96 oil firms that wanted a slice of the deal then filed a suit arguing that they were being edged out of the market.

However, Ruto praised the deal at the time as good and would save the country Ksh68 billion every month as well as easing pressure on the dollar.