Azimio la Umoja leader Raila Odinga has claimed that there was no government-to-government oil deal between Kenya and gulf countries.
Addressing the media on Thursday, November 16, the former Prime Minister said only Energy Cabinet Secretary Davis Chirchir signed a deal with oil marketing companies in the gulf.
“The Kenyan government did not sign any contract with Saudi Arabia or the United Arab Emirates (UAE) only the Cabinet Secretary for Energy and Petroleum signed a deal with state-owned petroleum companies in the Middle East,” said Raila.
He claimed that the government characterized the deal as government-to-government to shield three Kenyan companies (Galana Oil, Gulf Energy, and Oryx Kenya Limited) from paying corporate tax.
“We now know the characterization of the deal as G to G was meant to shield three Kenyan companies from paying corporate tax,” the ODM chief stated.
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He wondered how the three oil companies were picked to sell oil to Kenyan at almost twice the price from bulk suppliers.
"This shady business model is being deployed by all the companies that were retained in the Ruto deal. They buy at low prices, delay in discharging, then ask to be allowed to offload at higher prices and the cost is passed to consumers," Raila alleged.
The ODM Leader went on to claim that fuel prices have been inflated by 59 percent and forced Uganda to opt to use the Tanzanian central corridor over Kenya.
"The volume it ferries via Kenya Pipeline has dropped to 52 percent, from 70 percent. So, other than making petroleum products ever more costly, the deal is going to kill the Kenya Pipeline Company as soon as this year," Raila continued.
He demanded President William Ruto to cancel the contract with Saudi Arabia and UAE and revert to the old open tender system saying it allowed various players to sell petroleum products.
“Ruto must immediately cancel the contract and revert to the open tender system which ensured a guaranteed supply of petroleum products. It has assigned responsibility to various players as opposed to the so-called g to g that makes Kenyans depend on inefficient and corrupt players,” said Raila.
He asked the Ethics and Anti-Corruption Commission (EACC) to move with speed and investigate who is benefitting from the current oil deal.
The Azimio chief asked President Ruto to restore the eight percent VAT on petrol and sack individuals who came up with the g-to-g oil deal.
He also asked the Ruto administration to make the memorandum of understanding between Kenya Saudi Arabia and the UAE public.
Raila further demanded that the Ministry of Energy and Petroleum make deals and supply agreements it signed with the Gulf oil-selling companies.
Additionally, he demanded investigations on the tax compliance status and pricing of three oil companies involved in the g-to-g deal.
“We need a comprehensive brief on what the mood by Uganda to pursue much of its petroleum needs through the Tanzanian central corridor means to our country, especially to the future of the Kenya Pipeline Company,” Raila added.
