Uganda’s President Yoweri Museveni has accused Kenyan middlemen of inflating the cost of fuel supplied to Uganda under Kenya’s Government-to-Government (G-to-G) petroleum import arrangement, a claim that has set off four days of political sparring in Nairobi over who benefits from the scheme and whether it needs an overhaul. Kenya’s Energy Ministry says the arrangement is transparent and has saved the country hundreds of millions of dollars a month. Opposition figures and the Motorists Association of Kenya want it audited. As of September 22, 2026, EPRA has not moved pump prices in response.
What is the G-to-G fuel deal?
Kenya introduced the Government-to-Government petroleum import arrangement in 2023, at the height of a dollar shortage that was squeezing the country’s ability to pay for refined fuel on the open market. Instead of Kenyan oil marketing companies bidding individually each month, the government negotiates directly with state-linked Gulf suppliers, Saudi Aramco, ADNOC and ENOC, for fixed premiums over an extended period.
The structural advantage is credit. Gulf suppliers give Kenya up to 180 days to pay instead of demanding cash upfront. During that window, local oil marketers buy their share of the imported cargo in Kenyan shillings, and Kenyan banks back those shilling transactions with letters of credit that are only settled in dollars once the six-month window closes. Energy Cabinet Secretary Opiyo Wandayi said in a September 20 statement that the model has freed up roughly $500 million (about Sh64.7 billion) in foreign exchange reserves every month since it started, and helped stabilise the shilling.
The original counterparties named under the deal were Gulf Energy, Galana Energies and Oryx Energies Kenya. One Petroleum, Asharami Synergy and BE Energy were added later.
What did Museveni actually say?
Speaking on September 17 at the groundbreaking of a 320-million-litre petroleum storage terminal in Mpigi District, Museveni said an unnamed Kenyan senator had alerted him that Uganda was buying petroleum products through middlemen based in Kenya rather than direct from bulk suppliers. He said the tip prompted Kampala to question its own procurement officials and switch to sourcing more directly through Vitol and the Uganda National Oil Company (UNOC).
He backed the claim with numbers: under the old arrangement, Uganda was paying a premium of $118 per metric tonne for diesel, $97.50 for petrol and $114.25 for aviation fuel. Under the current Vitol/UNOC arrangement, those premiums have fallen to $83, $61.50 and $79.25 respectively. Museveni did not name the senator.
It’s worth being precise about what those figures measure: they are the premiums Uganda pays on top of the benchmark price at the point of import, not pump prices, and not what Kenyan consumers pay.
How Kenyan politicians have reacted
- Eugene Wamalwa, DAP-Kenya leader, said on September 19 that his party would probe the G-to-G arrangement and hold those “involved in the G-to-G rip-off” accountable for its cost to consumers.
- The Motorists Association of Kenya called the same weekend for a full forensic audit covering every intermediary, commission, contract and pricing formula tied to the scheme, and demanded disclosure of the landed cost of every cargo.
- Fred Matiang’i, Jubilee Party deputy leader, said on September 21 that the G-to-G agreement should be published in full, that the role of middlemen must be disclosed and scrutinised, and that the National Oil Corporation of Kenya should be restored to a central role in securing supply.
What the government says
Wandayi’s September 20 statement defended the arrangement as private-sector-led and transparent throughout, framing it as a response to a genuine crisis: when President William Ruto’s administration took office in September 2022, he said, retail stations were operating with minimal or no stocks because of the dollar crunch. Ruto has separately defended the model, saying his government introduced it specifically to cut brokers out of fuel imports after 2022 — a defence that sits awkwardly next to Museveni’s claim that Kenyan middlemen were exactly what inflated Uganda’s costs.
Price premiums, before and after
| Product | Old premium (per tonne) | Current premium (per tonne) |
|---|---|---|
| Diesel | $118 | $83 |
| Petrol | $97.50 | $61.50 |
| Aviation fuel | $114.25 | $79.25 |
Figures as presented by President Museveni on September 17, 2026, comparing Uganda’s old procurement route with its current Vitol/UNOC arrangement. These are import premiums, not retail pump prices.
Will this affect pump prices in Kenya?
Not immediately. The Energy and Petroleum Regulatory Authority’s current pricing cycle, running September 15 to October 14, 2026, held Nairobi’s maximum pump prices unchanged: super petrol at Sh214.03 a litre, diesel at Sh217.86, and kerosene at Sh191.36. That review was already locked in before Museveni’s remarks became public. EPRA’s next price-setting window opens in mid-October, and any findings from a Kenyan audit of the G-to-G scheme would take considerably longer than that to reach consumers, if they reach pump prices at all — EPRA’s formula is driven mainly by global crude costs and the shilling’s exchange rate, not by import-deal politics.
FAQ
What is Kenya’s G-to-G fuel deal?
It’s a government-to-government petroleum import arrangement, started in 2023, under which Kenya buys fuel directly from Gulf state suppliers on extended credit terms to ease pressure on dollar reserves.
Who accused Kenya of hiding middlemen in the fuel deal?
Ugandan President Yoweri Museveni, in remarks on September 17, 2026, said an unnamed Kenyan senator told him Uganda had been buying fuel through Kenya-based middlemen.
Has this raised fuel prices in Kenya?
No. EPRA’s pump prices for the September 15–October 14, 2026 cycle are unchanged from the previous review.
What are people demanding now?
The Motorists Association of Kenya wants a forensic audit of the entire scheme. Opposition figures Eugene Wamalwa and Fred Matiang’i want the underlying agreement published and the middlemen identified.
Is the G-to-G deal still in place?
Yes. The government has defended it as ongoing and says it continues to save the country roughly $500 million a month in foreign exchange pressure.
For live pump price updates, see the Energy and Petroleum Regulatory Authority’s official pricing page.
Related reading on 254.ke: Audit Reveals Kenya Kwanza’s Fuel Strategy Falling Short, Wanga Praises Fuel Price Drop Amid New Energy Cabinet, and EPRA Shuts Down 13 Petrol Stations for Fuel Violations.
By the 254.ke Newsroom
