Parliament seeks special audit into Ruto’s UAE oil deal amid surging fuel prices
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Parliament raises red flag over Ruto's UAE oil deal calling for an audit after failing to address fuel prices
Parliament raises red flag over Ruto’s UAE oil deal calling for an audit after failing to address fuel prices.
In light of increasing fuel prices, Parliament has asked for a special audit into President William Ruto’s government-to-government oil arrangement with the United Arab Emirates (UAE).
In an effort to reduce pressure on the demand for dollars, the Ruto government entered into a deal with the UAE in March that allowed Kenya to purchase fuel on credit.
The decision was made to contract with three companies—Amarco, Abu Dhabi National Oil Corporation Global Trading, and National Oil Company—to provide Kenyans with petroleum products.
According to the agreement, the selected companies get to import the oil, and other marketers purchase it from them to supply the domestic market and neighboring nations.
MPs have however raised a red flag, saying the deal had failed to address the challenge of increasing oil prices.
The Pokot South MP David Pkosing-led energy committee is now concerned that despite the deal, touted as the silver bullet in efforts to lower fuel prices, has achieved nothing.
The legislators are now calling on the office of the Auditor General to commence a probe into the deal and establish its viability in cushioning Kenyans from the high fuel prices.
“We are seeking to understand what the deal was meant to achieve if not lowering the price of fuel that continues to go up. We will write to the Auditor General to conduct a special audit of the government-to-government deal,” said Pkosing during a meeting with the Energy and Petroleum Regulatory Authority (EPRA) board.
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The committee had also criticized the deal saying crucial details such as how the recruitment exercise to settle on the three oil companies was conducted, and when Kenyans should expect to enjoy lowered prices were not provided.
EPRA board secretary Mueni Mutula however passed the buck to EPRA’s management which she said handled the procurement process.
“The team is not well versed in this matter and might not be able to address the concerns raised by members. We do not have the information as the management handles procurement,” stated Mueni.
Kenyan oil marketers have also expressed dissatisfaction to the Kenya-UAE oil deal and have since filed a lawsuit, claiming that the government’s decision to choose a local oil marketer violates the Open Tender System, which requires marketers to submit competitive bids for the contract.
The oil companies assert that the Petroleum (Importation) Regulations, 2022 were gazetted without any public input or stakeholder consultation, which is unconstitutional.
The government had expected a decrease in fuel prices in April, but there are now widespread concerns that a litre of fuel could reach Sh200 in the coming weeks if new tax proposals by the National Treasury pass.
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