The government-to-government fuel import arrangement has come under fresh scrutiny after the Motorist Association of Kenya (MAK) demanded a forensic audit into how petroleum products are bought, priced and supplied in the country.
The call follows remarks by Ugandan President Yoweri Museveni, who spoke about the use of middlemen in fuel purchases involving Kenya. MAK said the claims had raised new questions about the procurement system and the role of the Energy and Petroleum Regulatory Authority (EPRA).
In a statement issued on Saturday, September 19, the motorists’ lobby called for an independent investigation covering the importation, procurement, pricing and distribution of petroleum products.
The association wants authorities to provide details of all intermediaries involved in the G-to-G arrangement, including the commissions they received, contracts entered into and the people or entities that benefited from the system.
“MAK therefore demands: First, a full forensic audit of the G-to-G petroleum procurement system, including all intermediaries, commissions, contracts, pricing formulas and beneficiaries,” the statement read.
MAK also wants the actual landed cost of every fuel cargo made public, alongside the margins added before the products are sold to consumers.
The association has at the same time renewed its call for an independent examination of EPRA’s fuel pricing system and its independence.
It said each cost used to determine the prices paid at petrol stations should be independently checked and protected against political or commercial interference.
The latest demands were prompted by Museveni’s remarks that a Kenyan senator had told him Uganda was purchasing petroleum products through middlemen in Kenya.
According to Museveni, the information led Uganda to consider direct sourcing of its petroleum products. The Uganda National Oil Company (UNOC) then worked with global energy trader Vitol, after which the premiums paid for petrol, diesel and aviation fuel declined.
Uganda announced in November 2023 that it would end its dependence on Kenyan oil marketing companies and intermediaries for petroleum supplies.
The country has since shifted to direct fuel imports through the Port of Mombasa, with the products transported using Kenya Pipeline infrastructure.
MAK’s demand comes as EPRA continues to enforce the current maximum pump prices, which will remain in place until October 14.
A litre of petrol is currently priced at Sh214.03, while diesel costs Sh217.86 per litre and kerosene is retailing at Sh191.38.