KCB Group’s Director of Corporate Banking Peter Ng’eno said the lender has issued letters of credit worth more than KSh 1.074 trillion to facilitate petroleum imports under Kenya’s Government-to-Government (G-to-G) fuel importation programme since 2022, positioning bank-backed trade finance as a key pillar in the country’s fuel supply chain.

Ng’eno made the remarks on Monday, June 29, 2026, during the Petroleum Institute of East Africa (PIEA) Q2 State of the Oil Industry Briefing held at the Sarova Stanley Hotel in Nairobi, an event attended by Ministry of Energy and Petroleum Cabinet Secretary Hon. James Wandayi and PIEA chairperson Peter Murungi, according to the prepared remarks.

The G-to-G framework was introduced in 2023 to manage fuel supply and reduce immediate pressure on foreign exchange demand by altering how import financing and settlement timelines are structured. Kenya remains heavily reliant on imported refined petroleum products, making the sector sensitive to global price swings, shipping disruptions and dollar liquidity conditions.

In his statement, Ng’eno linked fuel supply resilience to access to financing, saying disruptions in global markets quickly translate into higher freight costs, insurance premiums, foreign exchange demand and working capital requirements for importers and marketers.

“I am proud to note that to date, KCB has issued Letters of Credit worth over KShs. 1.074 trillion under the programme, facilitating the importation of petroleum products that continue to power industries, businesses and households across the country,” Ng’eno said.

He said Kenya’s 2022 energy financing challenge, which he attributed to rising pressure on fuel imports and intensifying foreign exchange demand, prompted the government to seek a financial partner to operationalise a new importation framework. “KCB stepped forward as the primary financial partner under the Government-to-Government (G-to-G) fuel importation programme,” Ng’eno said, adding that the bank used its capital base and international banking relationships to support the programme’s rollout.

Beyond petroleum trade finance, Ng’eno said the bank finances different parts of the oil and gas value chain, including “upstream exploration and production,” “midstream infrastructure and logistics,” and downstream marketers and distributors. He framed the sector as central to economic activity as East Africa’s population grows and urbanisation and industrial output increase.

The remarks also pointed to recent geopolitical tensions, particularly in the Middle East, as a reminder of exposure to external supply shocks. “The recent tensions in the Middle East exposed the vulnerabilities that continue to exist within global energy markets,” Ng’eno said, noting that disruptions around key shipping routes have direct cost implications for import-dependent countries.

For Kenya’s business landscape, the disclosure underscores the scale of bank intermediation that has supported the import system at a time of constrained dollar liquidity and elevated balance-of-payments pressures. Letters of credit are typically issued in hard currency and rely on correspondent banking lines, linking domestic energy supply continuity to the health of local banking liquidity and international credit relationships.

Ng’eno also said energy security and sustainability should be pursued in parallel, calling for an energy mix that supports industrialisation while “progressively embracing cleaner and more efficient energy solutions.” He said the transition creates investment opportunities in renewable energy infrastructure and cleaner technologies, and that KCB is developing financing structures to support “tomorrow’s energy solutions.”

Looking ahead, Ng’eno said the region’s energy sector outcomes will depend on coordinated action by government, industry and financiers. “The future of East Africa’s energy sector will not be shaped by any one institution acting alone,” he said, calling for enabling policies, investment in innovation and capital mobilisation to strengthen energy security and resilience.

The International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank (IsDB) Group, has signed a five-year framework agreement with the Islamic Republic of Mauritania valued at US$1.0 billion (about KES 129.0 billion) to support the country’s trade finance and economic development priorities over the 2026–2030 period.

The agreement was signed on March 10, 2026 in Jeddah, Saudi Arabia, during an official visit by Mauritania’s Minister of Economic Affairs and Development and IsDB Governor, H.E. Dr. Abdallah O. Souleymane O. Cheikh-Sidia, to the IsDB Group headquarters, according to a statement from ITFC distributed by APO Group.

ITFC said the agreement was signed at its headquarters by H.E. Dr. Abdallah O. Souleymane O. Cheikh-Sidia and Eng. Adeeb Yousuf Al Aama, Chief Executive Officer of ITFC. The signing was witnessed by H.E. Mohamed Lemine Dhehby, Governor of the Central Bank of Mauritania and IsDB Alternate Governor for Mauritania, alongside representatives from ITFC and members of the Mauritanian delegation.

Under the framework, ITFC said it will mobilise financing and technical support for priority sectors of the Mauritanian economy, with a focus on energy, banking and private sector development. The planned support includes financing for the import of energy commodities, trade finance facilities and confirmation lines for letters of credit to local banks, and support for small and medium-sized enterprises (SMEs).

ITFC added that the package will also include technical assistance programmes aimed at enhancing agricultural productivity and promoting trade facilitation in strategic sectors.

“Speaking during the occasion, H.E. Dr. Abdallah O. Souleymane O. Cheikh-Sidia, Minister of Economic Affairs and Development of Mauritania, highlighted that the agreement will help mobilize critical financial resources to support national development priorities and foster sustainable economic growth,” ITFC said in the release.

Eng. Adeeb Al Aama, CEO of ITFC, said the agreement “demonstrates ITFC’s continued commitment to supporting its member countries through trade-driven development and will help strengthen key sectors of Mauritania’s economy while expanding opportunities for trade and investment,” according to the statement.

The deal adds to a growing role for development finance institutions in structuring trade-linked funding to address import needs—particularly for energy—while supporting local financial systems via instruments such as confirmation lines for letters of credit. For banks, these arrangements can help manage counterparty risk and improve access to international suppliers, especially in markets where foreign exchange constraints and balance of payments pressures can disrupt trade flows.

For East Africa, including Kenya, the announcement underscores a broader trend within the IsDB ecosystem: channeling large, multi-year trade finance frameworks into member countries, often tied to energy imports, bank liquidity for trade, and SME support. Such programmes can influence regional competition for concessional and trade-linked funding, while shaping trade corridors as member states expand import capacity and strengthen local banking relationships with international counterparties.

ITFC said Mauritania has been a partner since the institution’s inception in 2008, with cumulative approvals exceeding US$1.2 billion (about KES 154.8 billion) for projects supporting key sectors. The corporation’s next steps under the new framework are expected to involve rolling out specific financing lines and technical assistance programmes aligned with the priority sectors identified in the agreement.