Gov’t-to-Gov’t Fuel Deal is a Scam Driving Up Prices – Raila

Azimio la Umoja One Kenya Alliance coalition party leader Raila Odinga alleges that the government-to-government petroleum deal signed by Kenya and Saudi Arabia is a scam.

Speaking on Thursday, the opposition leader said the secret deal was driving up the cost of fuel.

Addressing a media briefing from the Jaramogi Oginga Odinga Foundation, Raila said the deal was benefitting a few individuals in government.

The opposition honcho revealed that the deal was actually signed by the Energy Ministry and state-owned companies in the Middle East.

According to Raila, the deal was meant to exempt three Kenyan companies from paying 30% corporate tax.

“There was no G-to-G. Kenya did not sign any contracts with Saudi Arabia or the UAE. Only the Ministry of Energy and Petroleum signed a deal with state-owned petroleum companies in the Middle East,” he said.

“Why Ruto chose to characterize the deal as a G-to-G is the first red flag that points to mischief in this deal.”

The ODM leader also wondered why Gulf Energy, Galana Oil Kenya Ltd, and Oryx Energies Kenya Limited were handpicked to handle local logistics.

He claimed that the three companies were selling oil at nearly twice the price of bulk suppliers.

“We know that in August this year, four months after the deal, the government allowed Oryx Energies to sell oil at prices that had been inflated by 17 per cent,” Raila said.

“In the Ruto deal, Oryx is the supplier of diesel to other oil marketing companies (OMCs) in the country. The excuse was the delay in discharging fuel at the jetty.”

He also called for the government to do away with the “government-to-government deal in favour of the previous model that featured a competitive procurement process”.

Raila told Kenyans that fuel prices are likely to soar in coming days.

“The open tender system was efficient, accountable, and competitive and offered prices commensurate with the international pricing model,” he said.