‘We have a better model than Uganda,’ Ruto defends G-to-G fuel deal

NAIROBI, Kenya Sep 21 – President William Ruto has defended Kenya’s Government-to-Government (G-to-G) fuel importation arrangement, saying the country has adopted a model that is different from and, in his words, better than Uganda’s current system.

“We have a better model than what Uganda is using today,” Ruto said while defending the arrangement amid renewed scrutiny of petroleum importation following remarks by Ugandan President Yoweri Museveni.

The debate over the G-to-G arrangement intensified after Museveni said Uganda had previously procured petroleum products through intermediaries in Kenya before changing its procurement model.

Museveni said Uganda subsequently began sourcing bulk petroleum products directly, citing lower premiums under its current arrangement.

Energy and Petroleum Cabinet Secretary Opiyo Wandayi has defended the G-to-G arrangement, saying it was introduced in 2023 to address severe foreign exchange pressures that threatened the country’s fuel supply and wider economy.

The Government says Kenya was facing a significant shortage of US dollars when the arrangement was introduced, with petroleum imports accounting for a substantial share of the country’s import bill.

Under the arrangement, Kenya entered into agreements with Aramco Trading Fujairah FZE, Abu Dhabi National Oil Company (ADNOC) Global Trading Ltd and Emirates National Oil Company (ENOC) to supply refined petroleum products on credit terms of up to 180 days.

Wandayi has said the arrangement was designed to ease immediate demand for US dollars, preserve foreign exchange reserves and support stability in the Kenya shilling.

Museveni said Uganda had previously been buying petroleum products through middlemen in Kenya and that information provided by a Kenyan legislator prompted his government to review the arrangement.

According to Museveni, Uganda subsequently moved to a procurement arrangement involving Vitol and the Uganda National Oil Company.

Ugandan officials cited lower premiums for diesel, petrol and aviation fuel under the current system compared with the previous arrangement.

The Energy Ministry has said the international oil companies involved in Kenya’s G-to-G framework were allowed to appoint licensed Kenyan companies to handle local supply logistics.

The first companies selected included Gulf Energy Limited, Galana Energies Limited and Oryx Energies Kenya Limited, with One Petroleum Limited, Asharami Synergy Limited and BE Energy Limited subsequently added.

The Government has maintained that the involvement of local oil marketing companies was part of the structure agreed with the international suppliers and was necessary to ensure the continued supply of petroleum products.

Wandayi has also said freight and premium charges under the arrangement were renegotiated, with rates reduced in September 2023 and again in March 2025.

Ruto’s defence comes as the Government faces renewed calls for greater disclosure of the G-to-G arrangement following Museveni’s remarks.

The President’s position is that Kenya’s model provides a more effective framework for securing petroleum supplies while managing foreign exchange pressures.

The Energy Ministry has similarly maintained that the arrangement helped protect Kenya from a potential fuel supply crisis and reduced pressure on the country’s dollar reserves.

The debate has consequently shifted toward differences between Kenya and Uganda’s petroleum procurement models, including the role of international suppliers, local oil marketing companies, pricing and the financing arrangements used to secure fuel supplies.