US kills Kenya oil deal

Photo|FILE US President Barack Obama (right) meets with outgoing US ambassador Scott Gration in the Roosevelt Room of the White House in Washington March 30, 2009. Mr Gration on July 4, 2012 said Kenya could face sanctions over its relations with Iran.

By NATION TEAM

Kenya, under pressure from the US and in the midst of security concerns, has cancelled an oil deal with Iran.

The Nation learnt on Wednesday that a meeting held at the Office of the President decided that the MoU with Iran for the annual purchase of oil annually should be cancelled.

The official reason, according to Energy Permanent Secretary Patrick Nyoike, was that the deal was not favourable, because it did not come with any price discount and Iran was only allowing a 90-day credit period.

Official feeling was also that this was not the first time that the government had signed such a deal with Iran, with no success.

According to government sources, the agreement was first signed in 2009 and then in 2010 but both agreements lapsed since Kenya could not find a bank to secure the deal.

However, the more immediate reason appears to pressure by western governments, particularly the US.

“There is an embargo on Iranian oil. We don’t want to get involved in the intricacies of international inter-governmental issues,” Mr Nyoike was quoted by Reuters.

This is the latest development in a series of events which have put Kenya in the middle of the conflict between the West and Iran.  Read More >>