Museveni’s bombshell on G-to-G fuel deal shakes Kenya as motorists table demands

Uganda’s President Yoweri Museveni put his Kenyan counterpart William Ruto and his administration on the spot when he revealed that the landlocked country was duped into a deal with Kenya, which saw Uganda purchase petroleum products through middlemen despite the deal being presented as a government-to-government deal.

The revelations which sent shockwaves across the region were made on Friday, September 18 with Museveni revealing that the deal saw his country pay more for petroleum products to fill the pockets of middlemen in Kenya.

According to the Ugandan President, the matter was first brought to his attention by a Kenyan senator, with Ugandan authorities conducting investigations that culminated in the termination of the deal rolled out by Ruto and presented as one that would see citizens enjoy lower fuel prices.

“The Republic of Uganda was buying petroleum products through middlemen in Kenya. Can you imagine that? And the person who woke me up first was a senator from Kenya,” Museveni said.

Museveni unpacked how his country was fleeced during the groundbreaking ceremony for a 320-million-litre petroleum storage terminal in Mpigi District, Uganda, with data presented at the event backing his claims.

Figures shared at the event show that Uganda was paying a premium of $118 per metric tonne for diesel under G-to-G deal, compared with $83 under its current arrangement with Vitol and Uganda National Oil Company (UNOC).

For petrol, the premium fell from $97.50 to $61.50 per metric tonne, while that of aviation fuel fell from $114.25 to $79.25.

In the wake of the bombshell dropped by a sitting Head of State of a neighbouring country that dumped the controversial G-to-G arrangement with Kenya, the Motorist Association of Kenya (MAK) has called for a full forensic audit of Kenya’s government-to-government fuel procurement system

According to MAK, the revelations by Museveni have raised serious questions about how petroleum products are imported and priced in Kenya, necessitating a full forensic audit to establish the truth about what it referred to as an opaque fuel-pricing 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 noted.

The statement also called for a thorough scrutiny of the Energy and Petroleum Regulatory Authority (EPRA) to address concerns that cartels and middlemen may have found their way into the lucrative trade, with motorists paying more for the products and the cost reflecting in the prices of commodities in the country.

MAK further demanded an independent review of EPRA’s pricing framework, including a complete disclosure of the actual landed cost of every petroleum cargo, the parties involved and every margin added before the product reaches the consumer.

The statement which outlined the demands by the motorists association also noted that anyone found to have engaged in fraud, abuse of office, unlawful enrichment or other criminal conduct must face the full consequences of the law, including recovery of public funds and prosecution.