According to data submitted to Parliament, at least five petroleum businesses received the Sh16 billion in fuel subsidies offered by the Jubilee administration.
Rubis, Galana Oil Kenya, Oryx Energies, E3 Energy Kenya, and Vivo Energy are the primary recipients, Energy Cabinet Secretary Davis Chirchir told MPs.
According to the CS, who appeared before the Public Petitions Committee, Oryx received the majority of the funds—Sh8.2 billion—while Galana received Sh3.2 billion.
Vivo received Sh1.02 billion, E3 received Sh3.52 billion, and Rubis pocketed Sh6.29 million.
According to reports, the money was withdrawn in accordance with Article 223 of the Constitution, which gives the Treasury authority to disburse funds without the consent of Parliament.
The monies were taken out of the Consolidated Fund Services.
“The payments were in respect to the petroleum pump price stabilization program that was introduced through Legal Notice No. 124 of July 10, 2020, Petroleum Development Levy Order, 2020,” Chirchir said.
The amount is part of the Sh54.6 billion the Treasury had committed to withdraw. Sh810 million was released to the State House, Sh2.2 billion for building the military research hospital, Sh4.5 billion for unga subsidy, Sh9.45 billion for road construction and Sh6 billion for Telkom Kenya.
Earlier this week, the government announced a six-month oil supply deal with Saudi Arabia and the United Arab Emirates.
Abu Dhabi National Oil Company will provide three cargoes of super petrol every month, said CS Chirchir.
The agreement, involving Saudi Aramco, according to Chirchir, would relieve pressure on the Kenyan government, which has been experiencing a shortage of oil products as a result of the Covid-19 outbreak.
“The product will now be paid for in Kenyan shillings and this will ensure the dollar is available for other sectors of the economy,” said the CS.
“The proposed transaction is expected to alleviate the demand for dollars driven by petroleum imports by extending the time required to source for the dollars from the current five days to 180 days.”
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