Kenya's government will pay subsidy arrears to petrol retailers this week as it seeks to allay fears of potential fuel shortages and forestall a crisis, a senior government official said on Monday.
Like other frontier economies, Kenya is reeling from a surge in crude oil prices since last year, which have forced it to start subsiding retail prices.
But the latest jump is causing cash flow problems at some smaller fuel retailers, Andrew Kamau, principal secretary in the petroleum and mining ministry, told Reuters, leading to supply shortages, and the hardships have been compounded by delays in the payment of subsidies to the companies by the government.
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