Oil marketing companies involved in government-to-government fuel importation dismiss Raila claims of corruption in the deal.
In a joint statement, the three companies that opposition leader Raila Odinga has accused of abnormalities in the government-to-government oil contract denied claims that they are being exploited to artificially raise fuel costs in the nation.
The oil marketers; Gulf Energy, Galana Energies, and Oryx Energies refuted claims that there was no MoU signed in the G-to-G oil deal.
“There is an MoU between the government of Kenya and the governments of the IOCs, also supported by long-existing bilateral trade relations between Kenya and these countries,” stated the companies.
Raila Odinga had accused the corporations of raising fuel prices.
The Azimio leader labeled Kenya Kwanza’s G2G deal a major scam that was driving up the cost of fuel while benefiting shadowy government officials.
In response, the three companies state that international variables dictate fuel costs and that there was an increase in worldwide fuel prices that corresponded with the start of the G-to-G supply.
“The local cost of fuel is determined by international oil prices, the prevailing forex rate, and applicable taxes. The global oil prices have been steadily rising due to the global post-COVID recovery in demand, and certainly more with the geopolitical challenges over the last 18 months,” read the statement.
“It is noteworthy that the world prices have been rising from Quarter 2 of 2023 which coincided with the start of the G-to-G supply.”
The three companies further dismissed claims that they have been exempted from paying the 30 percent corporate tax, saying just like all other organizations, they have been paying all relevant taxes.
“There is no exemption from payment of any tax (no tax exemption has been sought by the nominated OMCs, nor has the GoK offered any). The Kenyan companies involved in the G-to-G supply pay their corporate taxes, and all other taxes like any other organization,” added the companies.