### Summary
Kenya will allow private sector players to take over the government-backed fuel import credit scheme after the International Monetary Fund (IMF) raised concerns about currency-related costs for taxpayers.
### Facts
- Kenya will step back from the government-backed fuel import credit scheme negotiated with gulf nations.
- The IMF expressed concerns about taxpayers being exposed to currency-related costs.
- The government will allow private sector players, including oil marketing companies (OMCs), banks, and credit insurance providers, to run the scheme.
- The scheme aims to ease forex pressures by postponing the demand for dollars for fuel purchases, estimated at $500 million monthly.
- The Treasury provides comfort letters to exporters and local banks as assurance of meeting obligations for fuel purchases.
- The IMF believes the government is exposed to risks if forex valuation losses are not passed through to consumers.
- The government will make the first payment for the April consignment in mid-September.
- The total amount of outstanding obligations of oil marketing companies is estimated to be over $4 billion by the end of September 2023.
- The government insists that it is not incurring any costs and is creating safeguards for the market.
### Reference
- [IMF express concerns](https://www.businessdailyafrica.com/bd/markets/commodities/kenya-gulf-fuel-credit-scheme-IMF/4007734-5570322-t8m8xhz/index.html)
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