Ruto Challenges Odinga to Prove Government-to-Government Oil Deal Scam
President William Ruto has called on opposition leader Raila Odinga to back up his claims that the government-to-government (G-to-G) oil deal is a scam, rather than spreading unfounded allegations. Ruto asserts that the deal is legitimate and above board, with support from Oil Marketing Companies (OMCs) serving as evidence.
In response to Odinga’s demand for the cancellation of the G-to-G deal, Ruto challenges him to examine the contractual agreements between the OMCs and the government, asserting that these documents are readily available in the public domain. Ruto urges Odinga to stop skirting the issue and employ parliamentary resources to scrutinize the contracts.
Odinga previously claimed that the G-to-G deal was not a genuine agreement between Kenya and Saudi Arabia or the United Arab Emirates (UAE). He alleged that it was merely a ploy to shield three Kenyan companies from paying corporate tax. However, Ruto dismissed these allegations, stating that the G-to-G framework facilitated more favorable oil prices and dispelling any notion of tax evasion by the local companies involved.
The OMCs themselves released a joint statement reaffirming the benefits of the G-to-G deal. They emphasized that, under this framework, the OMCs pay for petroleum in Kenyan shillings, eliminating the need to source dollars from the local market, thereby avoiding distortions in the foreign exchange market. They also clarified that tax clearance certificates are necessary for the OMCs to operate legally and that their tax compliance status can be verified through the Kenya Revenue Authority.
Ruto’s government decided to pursue government-to-government oil supply contracts as a response to the significant depreciation of the Kenyan shilling. This move marked the country’s departure from the Open Tender System (OTS) for fuel importation. The G-to-G deal involved three major state-owned firms—Saudi Aramco, Abu Dhabi Oil Company (ADNOC), and Emirates National Oil Company (Enoc)—selecting local oil marketing companies as their distributors.
While Odinga advocates for a return to the OTS model, Ruto maintains that the G-to-G arrangement is more beneficial to consumers and ensures a steady supply of petroleum products. However, Odinga argues that the G-to-G setup has resulted in higher fuel prices for consumers.
The debate between Ruto and Odinga underscores the importance of transparency and efficacy in oil procurement and distribution. As these opposing viewpoints clash, the ultimate goal should be to serve the best interests of the Kenyan people.
