President William Ruto’s economic advisor David Ndii has swiftly reacted following reports that kenya might be forced to compensate Gulf Oil companies for not meeting the minimum fuel import volumes.
Speaking via his official twitter handle, David Ndii claimed that IMF doesn’t understand basics of structured finances.
Ndii further noted that kenya extended the terms matching the contract quantities after Uganda exited the deal.
“IMF says that Kenya may need to compensate Gulf Oil companies for not meeting the minimum fuel import volumes stipulated in the G2G agreement.
The shortfall stems from a decrease in domestic fuel demand (driven by high prices?) and Uganda’s recent decision to import fuel directly instead of relying on Kenyan routes.
This situation places additional financial pressure on Kenya, potentially leading to contingent liabilities for the government as it manages the evolving dynamics in regional fuel supply and demand”, Mwango Capital wrote.
“We’ve struggled to educate IMF mandarins on this transaction but it’s difficult if you don’t grasp basics of structured finance. There is no exposure. Once Uganda exited, we extended term to match the contract quantities. Variation clauses are standard in commercial contracts”, David Ndii responded.
His statement comes off as Ruto’s Kenya Kwanza government plan to introduce new taxes that were rejected under the finance bill.
By Kenyans