In a significant development, the Kenyan Treasury has disbursed Ksh 35.2 billion (equivalent to $238.8 million) as part of its commitments in a momentous government-to-government agreement inked between Kenya and prominent Gulf nations.
Official records from the Treasury reveal that this payment constitutes the initial tranche under the Letters of Credit (LCs) tied to the pact involving the Kenyan government and several major Gulf-based oil entities, such as Saudi Aramco, Emirates National Oil Corporation (ENOC), and Abu Dhabi National Oil Corporation Global Trading (ADNOC). Notably, a robust escrow account currently holds Ksh 146.7 billion ($1 billion), safeguarding the interests of all parties involved.
Additionally, a designated escrow fund is securing Ksh 115 billion, pending the fulfillment of fuel supply requirements. Importantly, the Treasury emphasized that these LCs, cumulatively valued at USD 238,842,710.12, have already been settled well ahead of their maturity dates, ensuring a stable foreign exchange market.
This substantial financial transaction stems from a fuel accord originally forged between the Kenyan government and three distinguished Gulf corporations in March. Remarkably, the payment, initially slated for an earlier date, was deferred until September to enable traders and importers to navigate foreign exchange challenges.
Under this historic deal, Saudi Aramco of Saudi Arabia, Emirates National Oil Company Group (ENOC) of Dubai, and the Abu Dhabi National Oil Company (ADNOC) will each receive their due payments as part of the oil agreement.
When the agreement was initially struck, President Ruto had pledged that this strategic move would enable the government to explore innovative avenues to alleviate pressure on the Kenyan shilling.
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