Government Spokesperson Isaac Mwaura has defended the government’s decision to adopt the Government-to-Government (G-to-G) model for fuel importation.
Speaking at a press conference, Mwaura said the G-to-G deal was introduced to address the fuel crisis experienced in 2022, when the country faced shortages and volatile prices.
“The previous system of spot buying allowed manipulation by some market players, creating artificial shortages and driving up demand for foreign currency,” he said.
According to Mwaura, the G-to-G arrangement eliminates middlemen and enables direct procurement from major international oil producers.
“This approach allows the government to negotiate prices in advance and schedule imports in a structured manner, ultimately bringing stability, predictability, and better planning to Kenya’s fuel supply chain,” he explained.
He added that the programme has ensured a steady and reliable fuel supply over the past three years. He further noted that the improvements have contributed to a stronger Kenyan shilling, lower inflation, and increased foreign exchange reserves.
Mwaura dismissed opposition claims that the G-to-G model has not benefited the country, terming them misleading.
However, opposition leaders led by former Deputy President Rigathi Gachagua have raised concerns over the framework.
In a press conference held yesterday, Gachagua alleged that disruptions in global oil supply linked to tensions in the Middle East triggered a delivery default under the G-to-G arrangement, forcing authorities to activate emergency procurement provisions under the Petroleum Importation Regulations, 2023.
He also claimed that President William Ruto is directly benefiting from revised fuel prices.
Mwaura, however, dismissed the allegations, maintaining that the G-to-G framework has enabled the country to secure fuel at lower rates.
On measures to cushion Kenyans from rising fuel prices, Mwaura said the government has intervened to prevent diesel prices from exceeding KSh230 per litre.
He noted that a KSh6.2 billion stabilisation fund has been deployed through the Petroleum Development Levy to absorb part of the cost increases.
In addition, the government has temporarily reduced VAT on petroleum products from 16 per cent to 8 per cent, a move that has directly lowered pump prices for both petrol and diesel.
