NAIROBI, Kenya — Jubilee Deputy Party Leader and Presidential aspirant Fred Matiang’i has renewed calls for the full publication of Kenya’s Government-to-Government (G-to-G) petroleum import agreement following criticism by Ugandan President Yoweri Museveni over the use of middlemen in fuel imports through Kenya.
Matiang’i said Museveni’s remarks had raised fresh questions about an arrangement that was presented as a government-to-government framework and called for disclosure of the people and companies involved in its implementation.
Matiang’i calls for G-to-G deal to be published
In a statement on Sunday, September 20, Matiang’i recalled his April 19 appearance on Citizen TV, where he said he would not have signed the G-to-G agreement and called for its publication.
“On Sunday, April 19, I told Citizen TV’s Sunday Live that I would not have signed the Government-to-Government oil deal and called for the agreement to be made public,” Matiang’i said.
He said Museveni’s latest comments had reinforced the need for greater scrutiny of how Kenya’s fuel import framework was implemented.
Matiang’i specifically called for disclosure of the role played by intermediaries and the identities of those involved in the arrangement.
“The G-to-G agreement must be published in full. The role of the middlemen must be disclosed and scrutinised. And the National Oil Corporation of Kenya (NOCK) must be restored to its proper role in securing supply and helping stabilise our fuel market,” he said.
Museveni says Kenyan senator exposed fuel middlemen
Museveni raised the issue on Thursday, September 17, while speaking during the groundbreaking of a 320-million-litre petroleum storage terminal in Mpigi District, Uganda.
He said an unnamed Kenyan senator alerted him that Uganda had been purchasing petroleum products through intermediaries in Kenya.
“The Republic of Uganda was buying petroleum products through middlemen in Kenya. Can you imagine that? I didn’t know,” Museveni said.
Museveni said the information prompted his government to examine its fuel procurement arrangements.
He also recalled raising the issue with then Ugandan Energy Minister Irene Muloni, although the timeline has attracted attention because Muloni left the ministry in 2019, several years before Kenya introduced its G-to-G petroleum import framework in 2023.
Kenya introduced G-to-G fuel imports in 2023
Kenya introduced the G-to-G petroleum import arrangement in 2023 as the government sought to ease pressure on foreign-exchange reserves and reduce the immediate dollar requirements associated with petroleum imports.
Parliamentary records show that the government entered into agreements with prospective supplier governments and petroleum trading entities, with supplies provided on extended credit terms.
The first G-to-G cargoes arrived at the Port of Mombasa in April 2023.
The Energy and Petroleum Ministry told Parliament at the time that the arrangement would replace the Open Tender System and help reduce pressure on Kenya’s foreign-exchange reserves.
MPs, however, raised questions over the criteria used to nominate local oil marketing companies, the role of the National Oil Corporation of Kenya and who would bear currency risks.
Uganda later changed its fuel procurement model
Uganda subsequently moved towards direct procurement through the Uganda National Oil Company (UNOC) and international fuel trader Vitol.
Museveni said the change had resulted in lower petroleum import premiums, citing reductions in the prices Uganda paid for diesel, petrol and jet fuel.
Ugandan officials have presented the shift as part of efforts to reduce the cost of fuel imports and give the state a greater role in procurement.
The Ugandan president’s latest remarks have therefore reopened questions about the cost of intermediary arrangements and the relationship between Uganda’s procurement system and Kenya’s petroleum import infrastructure.
Matiang’i wants NOCK restored
Matiang’i also called for a stronger role for National Oil Corporation of Kenya (NOCK) in the country’s petroleum supply chain.
He argued that NOCK should regain what he described as its proper role in securing fuel supplies and helping stabilise the domestic market.
His demand comes amid renewed debate over the structure of Kenya’s petroleum imports, including the role of nominated oil marketing companies, import premiums and the terms under which petroleum products enter the country.
Parliament has previously scrutinised aspects of the G-to-G arrangement, including the nomination of local oil marketing companies and the involvement of NOCK.
Calls grow for audit of fuel import system
Museveni’s remarks have triggered renewed calls in Kenya for greater scrutiny of the G-to-G fuel framework.
Matiang’i said Kenyans should be able to establish who benefited from the arrangement and the cost associated with it.
“When public money is involved, secrecy cannot be the policy. Kenyans deserve to know who benefited, at what cost, and why,” he said.
The Motorists Association of Kenya has also called for a forensic audit of the G-to-G system.
Former Deputy President Rigathi Gachagua has separately criticised the arrangement, alleging that it was structured for private benefit rather than as a genuine government-to-government arrangement.
What remains unclear
Museveni’s comments have raised questions about the distinction between the government-to-government supply agreements and the local companies involved in moving or marketing petroleum products within the region.
Kenya’s parliamentary record confirms that the 2023 framework involved agreements with international suppliers and local oil marketing companies, while the government said its primary objective was to ease foreign-exchange pressure and improve fuel supply stability.
Matiang’i is now demanding that the full agreement and details of the intermediaries be made public.
