Today Thursday November 20^th 2025 Ministry of petroleum convened a meeting with South Sudan Fuel Supply Company Ltd and Oil Marketing Companies under the theme “Together We Secure a Sustainable Fuel Supply in South Sudan”. The meeting highlights the framework agreement signed between the Government of the Republic of South Sudan and the Government of the Republic of Kenya. The framework agreement aims to establish a foundational long-term government to government partnership between the two sisterly countries to facilitate the stable secured and cost-effective importation of refined petroleum products into South Sudan market. The objectives of the agreement, is to address South Sudan’s energy security needs to ensure a consistent and uninterrupted supply of Petroleum products.  It also aims to mitigates external supply chain volatility and stabilizing domestic energy costs. This is to leverages Kenya’s well-developed logistics and port infrastructure by transforming it into the primary gateway for South Sudan’s refined fuel requirements. One of the key provisions of government of government agreement is the Kenyan government commitment to prioritize the passage and storage of South Sudan designated petroleum products consignments through the Port of Mombasa and the Northern Corridor transport network which included dedicated access to pipeline capacity and storage facilities in Kenya. The agreement also defines annual minimum and maximum indicative volumes for various petroleum products which ensures predictability for both nation’s planning and procurement processes. The framework establishes a transparent formula-based pricing structure benchmarked against international commodity prices in addition to a defined margin for handling and transit. It proposes a mechanism for managing foreign currency exposure through revolving Letters of Credit or agreed upon credit period to ease immediate pressure on South Sudan’s foreign exchange reserves.

The strategic impact of this agreement is to enables South Sudan diversifies its supply routes hence reducing reliance on alternative less secure corridor and thereby enhances macroeconomic stability by standardizing procurement costs. This agreement is important because it will provide energy security as well as market stability, currency stability, economic development and empowering business community.