Kenya’s oil marketers face a significant challenge as the government has yet to pay KES46 billion in subsidy money.
Of this amount, Vivo, Total, and Rubis are owed KSh26 billion. To address this issue, the ingenious oil marketers have proposed a unique solution that benefits both parties and ensures their financial stability.
Their proposition suggests that the Treasury convert the outstanding KES46 billion into a three-year interest-earning debt, resembling a bond.
This arrangement would not only provide the marketers with interest over the duration but also grant the government additional time to raise the necessary funds. Truly a win-win scenario!
Furthermore, Kenyan companies are bracing themselves for the upcoming Finance Bill 2023, which is set to take effect next month.
In anticipation of potential cost increases, these companies have resorted to stockpiling crucial inputs such as materials and fuel.
This proactive measure demonstrates their strategic approach to mitigate potential disruptions in the supply chain and ensure consistent product availability.
As the logistics and supply chain industry continues to evolve, it is essential for organizations to adapt to challenging circumstances and find innovative solutions.
The proposal from the oil marketers exemplifies the power of collaboration and creative thinking in maintaining stability and fostering sustainable growth.
In September last year Kenya scrapped a subsidy on petrol a day after new President William Ruto said subsidies were unsustainable, as a move that could add to upward pressure on inflation.
