KCB Group has pumped Sh120 billion to support firms importing fuel into the country after the new government suspended the fuel subsidy programme.
Through a statement released by the bank, the action was taken with an aim to facilitate easy oil importation into the country by firms under its portfolio.
“KCB is a champion of regional trade, extending its services across the border of East Africa and beyond as a catalyst of the energy sector. We are working with the oil marketers to better support them to compete in the global petroleum market,” KCB group CEO Paul Russo said.
The money will enable firms conduct their transactions effectively while dealing with multinational supplies and enable easy distribution across the country and East African region.
According to the KCB’s statement, in order for a firm to receive the funds, it must have gotten the approval under the Open Tender System (OTS) through the Ministry of Petroleum and Mining. This enables them to import fuel on behalf of other firms using confirmed allocations.
Russo stated that the importation of petroleum products into the country through OTS allowed for marketing companies to access the valuable commodities at the same price and therefore levels competition in the petroleum market.
The banking firm further asserted that it wanted to cement its support for the energy sector and contribute to the stabilization of the prices of fuel in the short term as they are set to surge in the approaching months.
“KCB is a champion of regional trade, extending its services across the border of East Africa and beyond as a catalyst of the energy sector. We are working with the oil marketers to better support them to compete in the global petroleum market,” Russo said.
This comes days after President Ruto scrapped the fuel subsidy programme stating that it was a drain on public funds and had drastic impacts on the very same products being subsidized as it caused artificial shortages.
This subsequently saw the prices of fuel shoot up in the country.