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Kenya's energy minister on Friday defended the country's government-to-government (G2G) fuel-supply deals with Middle Eastern countries following calls from opposition parties to scrap them. Energy and Petroleum Minister Opiyo Wandayi said the arrangement had stabilised fuel supplies and allowed fixed freight and insurance costs despite global market fluctuations.
He said the East African country's fuel supplies were secure and stable, with the G2G framework providing a valuable buffer as the U.S.-Israeli war on Iran drags on. Wandayi said the current framework had allowed more scope to source fuel cargoes from different international supply points, including Europe, the U.S. Gulf coast, India and the Red Sea region.
Earlier in the week, Finance Minister John Mbadi described calls by opposition parties to end supply agreements with major Gulf suppliers - including Saudi Aramco and ADNOC of the United Arab Emirates - as "irresponsibility of the highest order." Mbadi's strong language underscored the government's commitment to maintaining the existing supply framework.
Some opposition politicians have argued the supply deals are opaque and have not secured competitive prices. Critics question whether Kenya is getting the best value from these government-to-government arrangements compared to open market procurement.
Kenya typically imports nearly all of its fuel products from the Middle East via the G2G deals. The country's heavy reliance on these agreements makes the supply framework critical for national energy security.
It raised domestic fuel prices in April and May in response to the global surge in energy costs linked to the Iran war, piling pressure on households already battling high living costs. Data on Friday showed inflation rose sharply in May for the second month running, driven by fuel price increases.
Transport operators went on strike last week over the fuel price hikes. They called off their strike after the government pledged to cut diesel prices in June, marking a temporary resolution to the transport sector's protest against soaring energy costs.


