Ruto government responds after FIVE EAC countries plan to ditch Kenyan fuel; point fingers at Uhuru
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Government spokesperson Isaac Mwaura justifies Ruto government-to-government fuel deal after five EAC countries register reservations
Government spokesperson Isaac Mwaura justifies Ruto government-to-government fuel deal after five EAC countries register reservations.
The Office of the Government Spokesperson has insisted that Ruto’s government-to-government oil deal with the Saudi Arabian Government was necessary.
In a statement released on Thursday, Spokesperson Isaac Mwaura blamed the administration of former President Uhuru Kenyatta for leaving the economy in danger of collapsing and exonerated the state from the contentious Ksh17 billion contract.
He contended that a number of gas stations were already experiencing fuel shortages due to a lack of cash to pay for consignments when Ruto assumed power in September 2022, leaving Oil Marketing Companies (OMCs) vulnerable.
Ruto, as a result, was forced to enter into a deal utilising the local currency and extending the payment period from five days to six months.
“All this persisted until the Kenya Kwanza Government came to power in an effort to prevent the economy from the brink of shutdown over the paralysis in the petroleum supply chain in the country, the new administration had to look for a quick and viable solution resulting to the government-to-government mode of supply, which is consistent with Kenya Kwanza manifesto pledge of using the value chain model rather than the supply chain, in order to cushion the hustlers from cartel-like behavior in the pricing and supply of basic and essential commodities,” read the statement in part.
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The response comes after the Ugandan government alleged that intermediaries in Kenya were impeding its attempts to import fuel at a low cost.
Ugandan Parliament passed the Petroleum Supply Amendment Bill 2023, cushioning its government from relying on the middlemen selling fuel at exorbitant prices.
The Bill allows the Uganda National Oil Company (UNOC) to import the oil directly from the refineries.
In addition, Rwanda, Burundi, the Democratic Republic of Congo, and South Sudan also expressed their reluctance to continue importing fuel through Kenya.
“The region is not asleep and has aligned infrastructure projects to manage our dominance. It has options, and in the long run, Kenya shall lose big time,” a CEO based in Kenya told BBC.
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