In a move to ensure energy stability, Kenya has renewed its oil supply agreement with three major state-owned Gulf companies for an additional two years, securing favorable terms that promise to benefit both parties. According to Daniel Kiptoo, head of the Energy and Petroleum Regulatory Authority (EPRA), the contract with Saudi Aramco, Emirates National Oil, and Abu Dhabi National Oil Corporation will extend the current agreement under a 180-day credit framework, Bloomberg News reports.
This extension, set to initiate towards the end of 2025, follows the successful completion of previous imports scheduled until 2024. The renewed deal reflects Kenya’s proactive approach to managing its energy needs amid fluctuating global oil prices, ensuring a steady supply of gasoline, diesel, kerosene, and jet fuel.
The trade relationship between Kenya and the UAE has strengthened significantly, with the UAE emerging as Kenya’s sixth-largest export market and its second-biggest source of imports. Over the past decade, trade volumes have surged, demonstrating the robust economic ties between these regions.
Experts emphasize the importance of such agreements for Kenya’s economic growth and energy security. “This deal is crucial for Kenya, not only for maintaining a stable energy supply but also for boosting investor confidence,” says Ahmed Hassan, an energy analyst at the Middle East Energy Forum. “The Gulf companies gain a reliable market for their products, which is strategically important as they navigate the global energy transition.”
Moreover, this extension comes at a time when Gulf countries are increasingly looking towards Africa as a significant partner in economic development, with investments in infrastructure and energy sectors rising. The credit terms negotiated offer Kenya a buffer against immediate cash outflows, a strategic advantage in managing its fiscal resources.
As Kenya continues to forge stronger economic ties with the Gulf region, the implications of this extended agreement highlight a promising future. The collaboration underscores not only Kenya’s commitment to securing its energy future but also the growing influence of Middle Eastern economies in African markets.
