Kenya Government Defends G-to-G Fuel Import Model Amid Opposition Claims and Price Concerns
Government Spokesperson Isaac Mwaura during a past press address. Photo/Courtesy
By Ruth Sang
The government has defended its government-to-Government (G-to-G) fuel importation model, maintaining that the framework has stabilized supply and shielded the country from market volatility, even as opposition leaders intensify criticism.
Speaking at a press conference, Government Spokesperson Isaac Mwaura said the G-to-G arrangement was introduced in response to the 2022 fuel crisis, when Kenya experienced shortages and fluctuating prices.
“The previous system of spot buying allowed manipulation by some market players, creating artificial shortages and driving up demand for foreign currency,” Mwaura said
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He explained that the current model eliminates intermediaries by enabling 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 added.
According to Mwaura, the programme has ensured a steady and reliable fuel supply over the past three years. He further linked the model to broader economic gains, noting that it has contributed to a stronger Kenyan shilling, reduced inflation, and improved foreign exchange reserves.
Mwaura dismissed opposition criticism of the G-to-G framework as misleading, insisting that the arrangement has enabled the country to secure fuel at more favorable rates.
However, opposition leaders led by former Deputy President Rigathi Gachagua have questioned the effectiveness and transparency of the model. In a separate press briefing, Gachagua alleged that disruptions in global oil supply, linked to tensions in the Middle East, triggered a delivery default under the agreement.
He further claimed that the situation forced authorities to invoke emergency procurement provisions under the Petroleum Importation Regulations, 2023. Gachagua also alleged that President William Ruto is directly benefiting from revised fuel pricing—claims the government has strongly denied.
On measures to cushion consumers from rising fuel costs, Mwaura said the government has taken steps to stabilize pump prices. He noted that authorities have intervened to prevent diesel prices from exceeding KSh230 per litre.
He added 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 Value Added Tax (VAT) on petroleum products from 16 per cent to 8 per cent, a move he said has directly lowered prices for both petrol and diesel.
The debate over the G-to-G fuel model continues to draw public attention, with both the government and opposition presenting sharply contrasting views on its impact on the economy and consumers.
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