How Kenya plans to cushion gulf oil deal from shilling slide

Fuel station

Vehicles line up to fuel at a petrol station in Nairobi on July 1, 2023. 

Photo credit: Francis Nderitu | Nation Media Group

Kenya has set up an interest-bearing escrow account into which the proceeds from the sale of fuel sourced through the government-to-government deal are deposited in an effort to cushion itself from foreign exchange risk.

This measure is in preparation for a dollar-based payment to be made once the window for credit-based fuel importation under the deal lapses on December 31.

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Note: The results are not exact but very close to the actual.