NAIROBI, Kenya Sep 21 – President William Ruto has defended Kenya’s Government-to-Government (G-to-G) fuel importation arrangement, saying the country has adopted a model that is different from and, in his words, better than Uganda’s current system.

📻 Breaking It Down

“We have a better model than what Uganda is using today,” Ruto said while defending the arrangement amid renewed scrutiny of petroleum importation following remarks by Ugandan President Yoweri Museveni.

The debate over the G-to-G arrangement intensified after Museveni said Uganda had previously procured petroleum products through intermediaries in Kenya before changing its procurement model.

Museveni said Uganda subsequently began sourcing bulk petroleum products directly, citing lower premiums under its current arrangement.

📌 What You Need to Know

Energy and Petroleum Cabinet Secretary Opiyo Wandayi has defended the G-to-G arrangement, saying it was introduced in 2023 to address severe foreign exchange pressures that threatened the country’s fuel supply and wider economy.

The Government says Kenya was facing a significant shortage of US dollars when the arrangement was introduced, with petroleum imports accounting for a substantial share of the country’s import bill.

Under the arrangement, Kenya entered into agreements with Aramco Trading Fujairah FZE, Abu Dhabi National Oil Company (ADNOC) Global Trading Ltd and Emirates National Oil Company (ENOC) to supply refined petroleum products on credit terms of up to 180 days.

Wandayi has said the arrangement was designed to ease immediate demand for US dollars, preserve foreign exchange reserves and support stability in the Kenya shilling.

Museveni said Uganda had previously been buying petroleum products through middlemen in Kenya and that information provided by a Kenyan legislator prompted his government to review the arrangement.

According to Museveni, Uganda subsequently moved to a procurement arrangement involving Vitol and the Uganda National Oil Company.

📰 Source: Capital FM Kenya