State-owned National Oil Corp. of Kenya has signed a deal with Saudi oil giant Aramco to import fuel at lower prices than the global costs of crude, local media reported.
This comes as part of the government’s efforts to lower pump prices in the African state, Business Daily reported.
As per the government-to-government deal, NOCK will import 30 % of Kenya’s monthly petroleum requirements from August.
“We already signed the memorandum of understanding and the next phase is negotiating the contract terms, we are waiting on them as from 24th July,” NOCK CEO Leparan ole Morintat told Business Daily.
“The plan is to start trials in August, for 2 months and see the impact of the exclusive prices that Saudi Aramco will be giving us. Then we will fully start in October,” he added.
The duration of the contract is not disclosed.
Saudi Aramco will finance the shipments or provide the product with an extended credit period and the Kenyan company will pay within 60 and 90 days.