Kenya Plans to Import Fuel from The (UAE) On Credit

NOCK will be expected to sell the bulk of the UAE cargo to small independent dealers, who have recently been cut off from the wholesale market in a shift that partly contributed to the biting fuel shortage that stalled transportation across the country

By The Weekly Vision Online

Kenya is in talks to import a third of its fuel from the United Arab Emirates (UAE) on credit to cut the dominance of oil majors who have been blamed for the prevailing fuel shortages. Top officials in the energy sector told the media that negotiations will allow the State-owned National Oil Corporation of Kenya (Nock) to ship in 30 per cent of the country’s diesel and petrol needs.
Nock will be expected to sell the bulk of the UAE cargo to small independent dealers, who have recently been cut off from the wholesale market in a shift that partly contributed to the biting fuel shortage that stalled transportation across the country.
“They [UAE] will finance the product or provide the product with an extended credit period then Nock will trade and pay them back,” said the top official who requested not to be identified before the closure of the UAE deal. If the State has its way, Nock will ship in 30 per cent of Kenya’s super, diesel and kerosene and the imports will also be used to provide strategic stocks for the country and alleviate the shortage of the commodities due to disruptions globally.
This plan is backed by the Draft Petroleum (Importation) (Quota Allocations) Regulations, 2022 and is aimed at boosting Nock’s cash flows in an industry where it has struggled to keep pace with multinationals.

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