Kenya eyes low-cost oil, cattle market in deal with Saudi

Kenya is eyeing cheaper crude oil and an export market for its cattle in Saudi Arabia as the two countries move to bolster their commercial relations.

A team 30 investors accompanied Saudi Arabia’s Commerce and Investment minister, Majed bin Abdulla Alqassabi, to Nairobi to explore modalities of shipping cheaper crude oil to Kenya and exporting cattle products in exchange.

“Kenya is now going to be our strategic partner and we will work together towards the achievement of the Vision 2030,” Dr Majed.

Kenya which has discovered about one billion barrel of crude oil in Turkana has already commenced its trial export of the commodity.

Its interest in Saudi’s crude appears to signify a strategic move to build reserves for internal processing when it finally constructs its refinery.

Among the top investors from the Arab Peninsula state were Abdullah Al-Mobty, chairman of Al Mobty Group of Companies, chairman of Alkorayef Group Saad Abdullah Alkorayef and general manager of Hmood Al Khalaf Trading and Transportation Group Hmood Al Khalaf.

Other prominent Saudi business leaders were chief executive of Kingdom Paints Factory Company Sultan Alqahtani and Dr Emad Al Thukair who runs Care Group.

The State House meeting witnessed by President Uhuru Kenyatta also saw the signing of an MoU on cooperation in paint distribution and retail manufacturing between the Akkad Systems Limited of Kenya and the Kingdom Paints Company of Saudi Arabia.

“We urge you to take advantage of the huge opportunities that we have created, key among them being infrastructure projects,” President Kenyatta told the Saudi investors.

Kenya’s exports to Saudi Arabia include tea, coffee, vegetables, textile materials, fruits, nuts and beef among others while major imports include oil, molasses, chemical products and paper.