President William Ruto’s Chief Economic Advisor, David Ndii, has dismissed reports of a looming forex crisis as Kenya prepared to settle dollar payments for fuel imported on credit.
Responding to a publication by a local newspaper on Monday, Ndii noted the country re-exports 40 per cent of the oil imported securing much of dollars recurred to settle the dollar-denominated bill.
“We re-export 40pc, that’s $200m flowing into the country escrowed. Jet is also paid in $. Six months of these $ flows is $1.5b plus what we’ve been buying quietly,” he said.
Ndii said the country had sufficient dollar stock to cover its needs through January, sufficient to settle payments maturing under the oil deal with producers in the Middle East.
“There is no time the g-g will pressure the forex market. Ever.”
Kenya signed a government-to-government deal with three firms in the Gulf under which the country would receive its stock on a 180-day credit cycle in a move aimed at easing the scramble for the dollar.
Under the deal, local oil marketers pay for fuel stock in shillings with a banking partner working to stockpile enough dollars to cover the funds collected from retailers.
