How Kenya can counter global oil price volatility

Kenya is grappling with substantial exposure to oil price volatility in what has seen its efforts to deal with price fluctuations challenging and expensive.

Conventional methods, such as stabilisation funds, have revealed notable areas for improvement to ensure efficiency.

A proposal of exploring Oil Risk Markets, alternatively known as oil futures or oil derivatives markets, as a potential solution.

The term “oil price risk” pertains to the possibility of abrupt, substantial, and unforeseen variations in prices. This risk can be chiefly managed in two ways locally.

Source: Business Daily Africa