President William Ruto has defended Kenya’s Government-to-Government (G-to-G) fuel importation deal after Ugandan President Yoweri Museveni questioned how petroleum products were previously sourced through Kenya.
Speaking to Kenyans living in the United States in New York on Sunday, Ruto said the arrangement had helped Kenya cut out middlemen and deal directly with major oil producers.
“Let me tell you, I can tell you with clarity: if there is one thing we got right, it is to make sure that our fuel has no brokers in between,” Ruto said.
“We are dealing with companies that are producers.”
Ruto challenged critics of the deal to compare fuel prices in Kenya and Uganda, arguing that Kenya had adopted a more efficient procurement system.
His remarks came after Museveni disclosed that Uganda had previously been importing petroleum products through intermediaries in Kenya.
Museveni said the arrangement was brought to his attention by a Kenyan senator around 2019, prompting him to order an investigation into the role of middlemen.
The Ugandan President later said his country entered a new arrangement involving Vitol and the Uganda National Oil Company to reduce the premiums paid for petroleum products.
Museveni also credited Ruto with helping facilitate the new arrangement, including Uganda’s acquisition of a 20.15 per cent stake in the Kenya Petroleum Refinery pipeline.
Kenya introduced its G-to-G fuel importation arrangement in 2023 as the country faced a shortage of US dollars and rising pressure on foreign exchange reserves.
Energy Cabinet Secretary Opiyo Wandayi has defended the deal, saying petroleum imports were at the time consuming about $500 million, or roughly 35 per cent of Kenya’s total import bill.
Under the arrangement, major oil companies agreed to supply petroleum products on credit terms of up to 180 days, easing immediate pressure on Kenya’s foreign exchange reserves.
Wandayi has also said the government renegotiated freight and premium charges under the deal.
According to the CS, the premium for diesel was reduced from $118 per metric tonne when the arrangement began to $78 in March 2025.
The renewed debate comes as Kenya continues to review its fuel importation system and seek ways of reducing costs along the petroleum supply chain.
Ruto is currently in New York for the 81st United Nations General Assembly, where he is also holding meetings with investors, global companies and other international leaders.