George Aladwa defends G-to-G fuel deal

Makadara MP George Aladwa has defended Kenya’s  Government-to-Government (G-to-G) petroleum importation arrangement.

Aladwa who is the Nairobi County Orange Democratic Movement chairma argues that the programme should be assessed through verifiable figures rather than political claims as debate over its cost, transparency and effectiveness intensifies.

He said the arrangement was introduced against the backdrop of a severe foreign-exchange shortage that had threatened Kenya’s ability to finance petroleum imports and maintain reliable fuel supplies.

“The G-to-G arrangement was introduced against the backdrop of a serious foreign-exchange challenge, when Kenya was struggling to secure sufficient dollars to finance petroleum imports and maintain a reliable supply of fuel,” he said.

The programme, introduced in 2023, provided for petroleum imports on credit terms of up to 180 days, compared with the much shorter payment period that had previously placed heavy pressure on the foreign-exchange market.

The National Treasury said the arrangement was intended to ease dollar liquidity pressures and reduce exchange-rate volatility. Aladwa said that reality should form the starting point of the current debate.

The MP said President William Ruto had challenged  critics of the arrangement to compare Kenya’s actual landed cost of petroleum with that of neighbouring countries instead of relying on political rhetoric.

“That is the debate we should be having. Not slogans. Not speculation. Not political accusations. Show Kenyans the figures,” Aladwa said.

The remarks come amid renewed scrutiny of the arrangement following comments by Ugandan President Yoweri Museveni about Uganda’s previous procurement of petroleum products through intermediaries in Kenya.

Museveni said Uganda had subsequently changed its procurement model.

Aladwa said Uganda’s procurement choices should not automatically be used to judge Kenya’s system, arguing that countries can adopt different suppliers, credit arrangements, pricing structures and procurement mechanisms.

“Uganda’s previous procurement model cannot, by itself, establish that Kenya’s  current G-to-G arrangement is improper,” he said.

The government has maintained that the arrangement helped address the dollar shortage while securing fuel supplies.

Energy Cabinet Secretary Opiyo Wandayi recently said petroleum imports previously required about Sh64.82 billion monthly, representing roughly 35 per cent of the country’s total import bill, with payments previously required within five days of cargo receipt.

Under the G-to-G framework, international suppliers provide petroleum on extended credit, easing the immediate demand for dollars.

The government has also reported reductions in import premiums for petrol, diesel and aviation fuel since the arrangement began. Aladwa, however, said defending the programme should not mean shielding it from scrutiny.

“G-to-G must remain open to scrutiny. Kenyans are entitled to know what they are paying for, how suppliers are selected, what the credit arrangements are, what premiums and freight charges are being paid and whether the country is receiving value for money,” he said.

He called for contracts, import prices, premiums, freight charges and other relevant documentation to be made available where allegations of wrongdoing are raised.

“If there is evidence of corruption or illegality, let it be presented to Parliament, investigative agencies and other competent institutions. Serious allegations demand serious evidence,” he said.

The G-to-G arrangement has previously attracted parliamentary scrutiny. In March 2023, the National Assembly’s Energy Committee examined the proposed shift from the Open Tender System to government-to-government procurement, with the government citing six-month credit terms among the reasons for the change.

Aladwa said critics should also explain what alternative procurement model they would propose and how it would address the foreign-exchange and fuel-supply challenges that prompted the arrangement.

He argued that the debate matters because petroleum costs have a direct effect on transport, food prices, manufacturing, businesses and household expenses.

“Fuel is not an abstract political issue. It affects transport costs, food prices, manufacturing, businesses and every household in the country,” he said.

Aladwa said the way forward should be evidence-based: defend G-to-G where the figures support it, investigate concerns where evidence raises questions and improve the system where weaknesses are established.

“Let those making accusations bring facts. Let the Government publish and defend the numbers. Let Parliament and the relevant oversight institutions scrutinise the arrangement. And let Kenyans judge the evidence for themselves,” he said.