Matiang’i demands full disclosure of G-to-G oil deal after Museveni remarks

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NAIROBI, Kenya Sep 21 – Jubilee Party Deputy Leader Fred Matiang’i has demanded the publication of Kenya’s Government-to-Government (G-to-G) oil importation agreement following remarks by Ugandan President Yoweri Museveni on the involvement of intermediaries in the petroleum supply chain.Matiang’i said the agreement should be made public in full and the role of companies acting as intermediaries subjected to scrutiny.He said the controversy surrounding the arrangement underscores the need for transparency in the management of Kenya’s petroleum imports.“The G2G agreement must be published in full. The role of the middlemen must be disclosed and scrutinized,” Matiang’i said.He also called for the National Oil Corporation of Kenya (NOCK) to be restored to what he described as its proper role in securing petroleum supplies and supporting stability in the local fuel market.“When public money is involved, secrecy cannot be the policy. Kenyans deserve to know who benefited, at what cost, and why,” Matiang’i said.Museveni said on September 17 that Uganda had previously obtained petroleum products through intermediaries in Kenya despite the G-to-G framework.He said the arrangement prompted Uganda to change its procurement approach and begin sourcing bulk petroleum products directly.Museveni also questioned why Ugandan officials had allowed what he described as a costly procurement arrangement to continue.He said a Kenyan legislator he identified as “Jirongo” had alerted him in 2019 about the presence of intermediaries in the regional G-to-G oil arrangement.Kenya’s Energy Cabinet Secretary Opiyo Wandayi has defended the G-to-G arrangement, saying it was established to address a severe shortage of US dollars that threatened the country’s foreign exchange reserves in 2022.Wandayi said the framework helped secure petroleum supplies while easing pressure on Kenya’s foreign exchange position.The arrangement was brokered in 2023 between Kenya and three international oil companies — Aramco Trading Fujairah FZE, Abu Dhabi National Oil Company (ADNOC) Global Trading Ltd and Emirates National Oil Company (Singapore) Private Limited (ENOC).According to Wandayi, the international oil companies appointed licensed Oil Marketing Companies (OMCs) to handle local supply logistics.Six companies were subsequently onboarded following a vetting process: Gulf Energy Limited, Galana Energies Limited, Oryx Energies Kenya Limited, One Petroleum Limited, Asharami Synergy Limited and BE Energy Limited.Wandayi maintains that the arrangement helped preserve Kenya’s foreign exchange reserves and contributed to stability in the Kenya shilling-US dollar exchange rate.Matiang’i is now seeking the release of the full G-to-G agreement and disclosure of the role played by intermediaries in the petroleum supply chain.The debate has placed renewed attention on how Kenya’s G-to-G petroleum arrangement was structured, how local supply logistics were handled and the role of both NOCK and licensed oil marketing companies.While Museveni has questioned the use of intermediaries in Uganda’s procurement of petroleum products through Kenya, the Kenyan Government maintains that the G-to-G framework was designed to address foreign exchange pressures and stabilise fuel supplies.Matiang’i wants the agreements and related arrangements made available for public scrutiny.