Kenya has devised a number of ways to help stabilize the Kenya shilling against the hard currencies, especially the US Dollar.
In April this year, the Kenyan government brokered a deal with the United Arab Emirates for government to Government arrangements in oil importation.
The arrangement with the United Arab Emirates and Saudi Arabia is a good measure to curb the greenback pressure.
Within the agreement, the importation of the oil does not require the US Dollar as the exchange currency in settling the payment.
Before the deal, it was estimated that the oil companies needed Ksh.71 billion (US$.500 million) to pay for fuel imports monthly.
The sector accounts for over 28% of the import deal.
This arrangement has relieved the country up to half a billion USD monthly that would have otherwise placed pressure on the Kenyan Shilling.
“My economic advisors (David Ndii, Mohamed Hassan and Davis Chirchir) have done something phenomenal; they have managed to put together a programme that has taken us away from looking for $500M every month to buy our fuel needs… today we can buy fuel in Ksh.,” said President Ruto.
