Kenya extends oil supply agreement with three Gulf companies

Kenya Extends Oil Supply Deal with Three Gulf Firms
Kenya has renewed a government‑to‑government (G‑to‑G) oil import agreement with three Gulf state-owned companies — Saudi Aramco, Emirates National Oil, and Abu Dhabi National Oil (ADNOC) — extending the contract by two years, according to Kenya’s energy regulator. The extension, which will take effect toward the end of 2025, allows Kenya to continue importing gasoline, diesel, kerosene, and jet fuel on a 180‑day credit plan.
Under the new terms, the three companies agreed to lower their freight‑and‑premium fees, reducing costs by between 6% and 13% per tonne for various fuel types.
Daniel Kiptoo, Director‑General of the Energy and Petroleum Regulatory Authority (EPRA), said Kenya will activate the renewed deal once it finishes importing the shipments already agreed under the previous contract.
This arrangement has been a key part of Kenya’s strategy to stabilize its foreign exchange reserves and ease pressure on the Kenyan shilling.
The response from within Kenya has been broadly positive. Supporters say the extended deal provides energy security, long-term financing, and predictable supply in a volatile global market.
However, some observers caution that while the credit terms are generous, the arrangement could still bind Kenya to expensive foreign-currency obligations if not managed carefully.
If the deal succeeds, it could serve as a model for other African nations looking to balance energy needs with financial constraints. But its long-term sustainability will depend on how Kenya navigates currency risks, retailer distribution, and the efficient use of imported fuels to support broader economic growth.