Nairobi, July 5 -- The State paid oil marketers Sh7.9 billion for the fuel subsidy scheme last month, helping ease cash flow woes that had hit the industry amid high operational costs.

Kello Harsama, the Principal Secretary in the State Department of Petroleum, said the money was paid to importers who will then pay the respective oil marketers based on the volumes lifted.

The payment, which was for the May 15-June 14 cycle, will significantly boost an industry that has in the past few months struggled due to cash flow hitches tied to the subsidy arrears.

A combination of the arrears and costly fuel in the wake of the US-Israel war on Iran made it difficult to lift sufficient volumes of fuel, leading to shortages, which were more pronou...