“Government Fires Back: ‘Fuel Crisis Is Global, Not Local — G-to-G Deal Shielding Kenyans from KSh 260 Diesel Shock!’”
Government Defends G-to-G Fuel Deal Amid Global Energy Crisis
By Jeff Kizzilah/Digital Editor
Hon. Omar Hassan,Sec General,UDA during the press conference in Nairobi.
The Government of Kenya has strongly dismissed claims by the Opposition linking the current fuel market dynamics to domestic policy failures, terming the accusations as false, misleading, and driven by political desperation rather than facts.
Kenya, like many countries across the globe, continues to experience the ripple effects of disruptions in the international energy market, largely triggered by the ongoing conflict in the Middle East. These global shocks have led to significant volatility in oil prices, affecting economies worldwide.
Contrary to assertions made by Opposition leaders, the Government-to-Government (G-to-G) fuel import arrangement has played a critical role in stabilizing the country’s energy sector. The framework has ensured uninterrupted supply of petroleum products while safeguarding the economy from extreme price fluctuations.
The Government notes that the G-to-G arrangement has significantly eased pressure on the US Dollar by eliminating the need for over 100 Oil Marketing Companies to independently source foreign currency. This has reduced speculative demand in the forex market and helped stabilize the exchange rate.
Further, the arrangement has protected Kenyan consumers from sharp increases in fuel prices. Without the G-to-G framework, pump prices would have soared to approximately KSh 236 per litre for petrol and KSh 260 for diesel—levels that would have placed an unbearable burden on households and businesses.
It has also emerged that alternative importation attempts outside the G-to-G framework would have cost the country an additional KSh 58,000 per tonne, further underscoring the cost-effectiveness of the current system.
The Government also clarified that there has been no fuel shortage in the country since January, dismissing reports of an Easter supply disruption as unfounded and unsupported by available data. Kenya has consistently maintained sufficient fuel stocks to meet national demand.
In line with the Master Framework Agreement, participating companies are required to promptly notify the Ministry of Energy and Petroleum of any logistical challenges. In this regard, Gulf Energy informed the Ministry of a shipment delay caused by tensions in the Strait of Hormuz.
However, the company swiftly secured two alternative vessels at no additional cost to the Government, despite elevated wartime shipping costs. The replacement shipments arrived ahead of schedule between March 15 and 19, 2026, fully compliant with Kenyan fuel quality standards.
The Government remains committed to ensuring energy security, economic stability, and protection of Kenyan consumers from global market shocks.
