NAIROBI, Kenya – President William Ruto’s Kenya Kwanza Cabinet has approved the extension of the Government-to-Government (G-to-G) arrangement to import refined petroleum products.
According to the Cabinet, this arrangement has eased the monthly demand for US dollars for petroleum imports, stabilising the shilling-dollar exchange rate at Sh 129 from a high of Sh 166 and reducing pump prices from Sh 217 per litre of petrol to Sh 177.
“The arrangement secures the supply of refined petroleum by allowing payments in Kenyan shillings, previously estimated at $500 million (Sh 64 billion) a month,” reads a communique from the Cabinet.
What is a Government-to-Government arrangement
Y News understands that Kenya has implemented a G-to-G arrangement to import petroleum products to stabilise its macroeconomic environment.
This arrangement provides an extended credit period for petroleum imports, allowing up to 180 days for payments.
Such agreements aim to ensure a stable supply of refined petroleum products while addressing financial pressures associated with these imports.
The Cabinet meeting also approved the procurement of Liquefied Petroleum Gas (LPG), Heavy Fuel Oil, and bitumen through a centrally coordinated bulk procurement system.
Earlier, Y News reported that President Ruto directed the Ministry of Education to ensure the installation of LPG gas tanks in all schools and TVET institutions.
The head of state further ordered the Ministry of Energy and Petroleum to facilitate the process, enabling the private sector to roll out the program within one year.
This was after he called on the private sector to support the government’s cooking gas program for public learning institutions.
Who will fund the newly launched LPG program
President Ruto said the private sector will primarily fund the project. He pointed out that the goal is to ensure that the institutions have access to clean energy.
“We will buy gas from them, and they will be required to install all the LPG tanks and other infrastructure in our schools and other facilities,” he said.
President Ruto spoke at Jamhuri High School in Nairobi on Monday, December 16, 2024, when the LPG Program for public educational institutions was commissioned.
According to the president, the program seeks to mitigate the effects of climate change by encouraging the use of gas rather than firewood and charcoal.
“We are launching a government project that will ensure 11,000 schools in the country are connected to gas to end the use of firewood and charcoal,” he said.
Why President William Ruto thanked his Cabinet
Meanwhile, the president thanked the Cabinet for their hard work and contributions during the year.
He cited the gains already made in food production, housing, labour mobility to access opportunities abroad, and tourism, among others.
“Many people thought we would concentrate on populism, but we concentrated on transformation; many thought we would concentrate on politics, but we concentrated on leadership,” he said.
He concluded, “It is not about some people, but all the people of Kenya.”
President Ruto chaired the Cabinet on Tuesday, December 17, 2024, which is the last for this year.
