Kenya is seeking to import oil from UAE on credit in a bid to curb fuel shortages. In this bid, the government is seeking ship up to a third of its fuel from the United Arab Emirates (UAE) on credit.
The importation will be done through the State-owned National Oil Corporation of Kenya (Nock). Nock will be tasked with shipping in 30 percent of the country’s diesel and petrol needs.
After the importation, Nock will be required to sell majorly to retailers. “Nock is 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,” a report that appeared in the local business newspaper, Business Daily, said.
The UAE will finance the product or provide the product with an extended credit period then Nock will trade and pay them back.
If the State has its way, Nock will ship in 30 percent of Kenya’s super, diesel and kerosene and the imports will also be used to provide strategic stocks for the country and alleviate shortage of the commodities due to disruptions globally, the report said.
This comes as motorists in the country gear up for a potential second fuel shortage crisis. As at Tuesday, April 26, fuel shortage was widely report in parts of Rift Valley and Western region