The Consumers Federation of Kenya (COFEK) has moved to court seeking to stop the implementation of a 25-year crude oil storage and handling agreement between Kenya Petroleum Refineries Limited (KPRL) and Gulf Energy E&P B.V.

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In a petition filed at the High Court in Nairobi, COFEK is challenging the circumstances under which the agreement was entered into, arguing that the selection process and material terms of the deal have not been made public.

The agreement was signed on August 26, 2026, and is projected by Kenya Pipeline Company (KPC) to generate approximately Ksh93.68 billion in gross revenue over its 25-year duration.

In a statement shared with Kenyans.co.ke , COFEK Secretary General Stephen Mutoro said the organisation was seeking the court's intervention before the agreement creates further contractual and operational obligations involving strategic petroleum infrastructure.

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"We are urging the High Court to suspend implementation now, before contractual rights lock in and Kenyans are left with a fait accompli on strategic petroleum infrastructure," Mutoro said on Thursday, September 24.

The consumer lobby in the documents seen by Kenyans.co.ke wants the court to examine whether the process leading to the agreement complied with constitutional requirements on transparency, accountability and public procurement.

COFEK has cited Article 227 of the Constitution, which requires public entities engaging in procurement to do so in a manner that is transparent, competitive and cost-effective.

The petition also invokes provisions of the Public Procurement and Asset Disposal Act, the Petroleum Act, the Fair Administrative Action Act and the Access to Information Act.

KPC previously disclosed that KPRL, its wholly owned subsidiary, would provide facilities and services for the receipt , storage, handling and delivery of crude oil for export through Kipevu Oil Terminal II (KOT II) in Mombasa.

The company said the projected Ksh93.68 billion would come from fixed service fees and recovery of qualifying variable costs but cautioned that the figure was based on projected crude oil throughput and applicable tariffs and was not guaranteed revenue.

📰 Source: Kenyans.co.ke