By John Ikani
Kenya has inked contracts with ADNOC of the United Arab Emirates and Saudi Aramco to supply petroleum products, with a six-month credit period.
The country’s Energy Minister, Davis Chirchir, stated that this move is intended to address the weakening of the local currency caused by a high demand for dollars.
“After vetting seven bidders, the two companies were selected and the agreements were signed on Friday,” said Chirchir during a press briefing.
However, foreign currency traders have voiced scepticism regarding the efficacy of the plan to alleviate pressure on the shilling currency, claiming that it only amounts to a temporary delay in demand.
In addition, the High Court is reviewing the plan, following a legal challenge filed by some private petitioners.
It is expected that the court will issue its initial directives on the case on Tuesday.
