Kenya Defends G-to-G Oil Deal Amid Transparency Demands

The Ministry of Energy and Petroleum defended Kenya's Government-to-Government (G-to-G) petroleum importation arrangement as a critical emergency measure that prevented economic collapse. Energy and Petroleum Cabinet Secretary Opiyo Wandayi stated the 2023 deal was a response to acute US dollar shortages and depleted fuel stocks encountered when President William Ruto took office in September 2022.

By brokering agreements with state-backed firms Aramco Trading Fujairah FZE, Abu Dhabi National Oil Company Global Trading Ltd, and Emirates National Oil Company, Kenya secured 180-day extended credit terms to preserve foreign reserves. The ministry reported that the arrangement reduced freight costs by March 2025, insulated pump prices from global shocks, and stabilized the Kenya Shilling.

However, Jubilee Party Deputy Leader Fred Matiang’i is demanding the full publication of the agreement following claims by Ugandan President Yoweri Museveni. Museveni stated on September 17 that Uganda previously obtained petroleum products through intermediaries in Kenya despite the G-to-G framework, prompting Uganda to shift toward direct sourcing. Matiang’i argues that the role of middlemen must be scrutinized to ensure transparency in the management of public funds.

In response, Wandayi explained that the international firms appointed six licensed Oil Marketing Companies, including Gulf Energy Limited and Galana Energies Limited, to manage local logistics.