Former Interior Cabinet Secretary Dr. Fred Matiang'i has urged the government to fully disclose the details of Kenya's Government-to-Government (G2G) oil agreement with Uganda. Matiang'i expressed concerns about the deal, stating that he had opposed it from the outset and had called for its disclosure. He made these remarks in response to Ugandan President Yoweri Museveni's claims that Uganda had been buying fuel through middlemen in Kenya.
Matiang'i stated that President Museveni's revelation that Uganda was paying significantly higher premiums for fuel through middlemen in Kenya raises serious questions about the arrangement. He emphasized that Kenyans should be able to establish how the arrangement operates, who is involved, and how much money changes hands. Matiang'i stressed that the G2G agreement must be published in full, and the role of middlemen must be disclosed and scrutinized.
The issue has also drawn demands from motorists for an independent audit of the system. The Motorist Association of Kenya (MAK) has called for a full forensic audit covering fuel imports, procurement, pricing, and distribution, including the role of intermediaries. MAK also wants the actual landed cost of every fuel cargo and the margins added before petroleum products reach consumers disclosed.
Kenya introduced its G2G fuel import arrangement in 2023 as the government sought to ease pressure on foreign-exchange reserves and stabilize petroleum supplies. Under the arrangement, Gulf-based suppliers provide petroleum products while nominated Kenyan oil marketing companies are involved in procurement and distribution.
Matiang'i also called for the National Oil Corporation of Kenya (NOCK) to be restored to its proper role in securing fuel supplies and helping stabilize the local market. He emphasized that when public money is involved, secrecy cannot be the policy, and Kenyans deserve to know who benefited, at what cost, and why.
President Museveni had revealed that a Kenyan senator had alerted him that Uganda was buying petroleum products through middlemen in Kenya. This information prompted Uganda to pursue direct sourcing through the Uganda National Oil Company (UNOC), working with global energy trader Vitol, resulting in lower premiums on petrol, diesel, and aviation fuel.
The controversy surrounding the G2G oil deal has sparked concerns about transparency and accountability in the procurement and distribution of fuel in Kenya. As the government faces mounting pressure to disclose the details of the agreement, it remains to be seen how the issue will be resolved and what impact it will have on the country's energy sector.
Key points
- Dr. Fred Matiang'i calls for full disclosure of Kenya's G2G oil agreement with Uganda.
- Motorists demand an independent audit of the G2G petroleum procurement system.
- The G2G arrangement was introduced in 2023 to ease pressure on foreign-exchange reserves and stabilize petroleum supplies.
