Kenya pays Saudi Arabia for oil in local currency

Kenya will buy oil from Saudi Arabia in local currency instead of dollars. This was reported by the Capital Business website on Wednesday, March 22.

Kenyan President William Ruto has signed an agreement on fuel imports on credit with his Saudi counterpart Mohammed bin Salman al Saud. Calculations will be made in Kenyan shillings.

“We just concluded an agreement last week in our fuel sector that will allow Kenya to access all of our fuel needs in the form of another six-month loan. This will eliminate the monthly demand in this market in the amount of $ 500 million,” the agency quotes the president as saying.

The President of the country believes that this step should ensure the availability of dollars. After the signing of the agreement, it is expected that the demand for the US dollar will fall, the US currency will become more affordable.

The vast majority of fuel volumes to Kenya come from Saudi Arabia and the United Arab Emirates. Up to this point, the country was paying for the resource in dollars.

“I want to assure those in Kenya who are faced with problems of access to dollars that we have taken steps to ensure the availability of dollars, in the next couple of weeks everything will be different, because our fuel companies will now pay for fuel in Kenya in shillings,” the president said.

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