Gachagua names President Ruto, top officials in fuel scandal

Gachagua who was speaking on behalf of the United Alternative Government linked recent fuel price increases to alleged irregularities in the petroleum importation framework.

In the statement, the coalition named President William Ruto as the central figure in the alleged scheme, alongside Head of Public Service Felix Koskei, Energy and Petroleum Cabinet Secretary Opiyo Wandayi, and Oburu Odinga, Chairperson of the Senate Energy Committee.

The coalition also referenced the recent arrests of former Petroleum Principal Secretary Mohamed Liban, former Energy and Petroleum Regulatory Authority (EPRA) Director General Daniel Kiptoo, and former Kenya Pipeline Company Managing Director Joe Sang, maintaining that the three officials acted within the law and should not be held culpable.

According to Gachagua, disruptions in global oil supply linked to tensions in the Middle East triggered a delivery default under the Government-to-Government (G-to-G) framework, prompting authorities to activate emergency procurement provisions under the Petroleum Importation Regulations, 2023.

He stated that contingency measures were implemented to avert a fuel shortage during the Easter period, including inviting oil marketing companies to submit bids for emergency supply. 

Two firms were reportedly awarded contracts based on technical compliance and pricing, with regulatory waivers granted to facilitate timely delivery.

However, the coalition alleges that Gulf Energy, which it linked to the President, submitted its bid after the procurement process had been concluded but was later introduced into the supply chain through political intervention.

The statement further claims that a subsequent renegotiation involving senior government officials and international oil companies led to revised pricing that took effect on April 14, pushing petrol prices up by Ksh. 28.69 per litre and diesel by Ksh. 40.30 per litre.

Gachagua warned that the price increases would have far-reaching economic consequences, including higher transport and production costs, ultimately burdening households.

He further alleged that the pricing changes could generate profits of up to Ksh.2.5 billion for entities within the supply chain, based on projected fuel volumes.

The coalition also questioned Kenya’s fuel pricing in comparison to neighbouring Uganda, noting that prices there remain significantly lower despite fuel transiting through Kenya’s port infrastructure.

The United Alternative Government is now calling for the immediate convening of a special parliamentary sitting within seven days to review the G-to-G petroleum framework, suspend certain fuel-related levies, and institute accountability measures.

Additionally, the coalition is demanding the resignation and prosecution of CS Opiyo Wandayi and Investment, Trade and Industry Cabinet Secretary Lee Kinyanjui over their alleged roles in the matter.