Monday, November 4, 2024 – President William Ruto’s Economic advisor David Ndii
is not happy with the International Monetary Fund (IMF) for questioning
President William Ruto’s oil deal with the Gulf-based countries.
In a statement, Ndii faulted IMF
for its supposed failure to interrogate the workings of the oil importation
deal Kenya entered with three Gulf-based companies.
The international lender sought
the Kenyan government’s take on the way forward as uncertainties rocked the
deal.
IMF observed that the
importation of oil as envisaged in the deal has been impeded by the fall of the
domestic fuel demand, Uganda’s decision to cease importing fuel via Kenya
compounding things.
The institution noted that Kenya
might be pressured to meet the financial shortfall arising from the decrease in
the volumes of oil to be imported.
However, reacting to the
situation, Ndii, who chairs the Presidential Council of Economic Advisers,
suggested that there was no cause for alarm as adjustments were made
immediately after Kampala decided to import its fuel directly.
According to him, the terms of
engagement were altered to accommodate the importation quantity deficit caused
by Uganda’s decision.
“We’ve struggled to educate
IMF mandarins on this transaction, but it’s difficult if you don’t grasp the
basics of structured finance. There is no exposure. Once Uganda exited, we
extended the term to match the contract quantities. Variation clauses are
standard in commercial contracts,” he said.
Kenya entered the deal with
Saudi Arabia’s Aramco, Abu Dhabi National Oil Company, and Emirates National Oil Company
switching from an open tender system in which local companies bid to import oil
every month.
The Kenyan DAILY POST
