State to step back from gulf fuel import scheme
Kenya plans to step back from the government-backed fuel import credit scheme after the IMF expressed concerns about potential currency-related costs, allowing private sector players to take over the scheme, according to Treasury Cabinet Secretary Njuguna Ndung'u. The scheme, aimed at easing forex pressures, postponed the demand for dollars by allowing designated oil importers to purchase fuel from the UAE and Saudi Arabia through comfort letters. The IMF argues that the government is exposed to currency risks if FX valuation losses are not passed on to consumers.