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Democracy for the Citizens Party (DCP) leader Rigathi Gachagua has rejected claims that global tensions around the Strait of Hormuz are behind Kenya’s rising fuel prices, instead accusing President William Ruto of inflating petroleum costs through the government-to-government (G-to-G) import arrangement.
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Speaking from the United Kingdom during a press briefing streamed on Facebook on Tuesday, Gachagua insisted that Kenya does not import fuel directly from Iran or via the Strait of Hormuz. He said supplies come from the Abu Dhabi National Oil Company (ADNOC) in Dubai and Saudi Aramco in Saudi Arabia.
“Our fuel doesn’t come from Iran, and it does not go through the Strait of Hormuz. It is supplied by ADNOC in Dubai and Saudi Aramco in Saudi Arabia, where it is refined. So this narrative that fuel prices are high because of the Strait of Hormuz is hot air,” he said.
The former Deputy President further claimed that the real cause of Kenya’s high fuel prices lies in “conflict of interest and state capture” within the G-to-G import system, which he alleged benefits politically connected interests.
He further alleged that the arrangement is a commercial deal linked to President Ruto through Gulf Energy, and that the issue is not taxation but the landed cost of fuel.
“The real issue facing our country in matters fuel is conflict of interest and state capture. The G-to-G arrangement is a business deal by President Ruto through Gulf Energy to fleece Kenyans. The issue is not taxes, it is the landed cost of fuel in Kenya,” he claimed.
Gachagua also made unverified claims about pricing margins, saying the landed cost of petrol stands at Ksh 170 and diesel at Ksh 167, and alleging that part of the cost is captured at presidential level, though he did not provide evidence to support the accusations.
“As we speak today, the landed cost of petrol is Ksh 170 and diesel is Ksh 167. We have confirmed information that in petrol, William Ruto pockets Ksh 37 per litre and in diesel Ksh 40 per litre. This is what we need to discuss,” he alleged.
However, he did not provide proof to substantiate the claims against the President or the pricing structure he cited.
His remarks contradict those of Treasury Cabinet Secretary John Mbadi, who has attributed the fuel price increases to global market shocks driven by geopolitical tensions in the Middle East.
Mbadi said the situation reflects a worldwide crisis, warning that disruptions in key oil transit routes could affect supply and pricing.
He cited concerns raised in discussions with International Monetary Fund (IMF) officials, noting fears that instability around the Strait of Hormuz could trigger a broader fuel supply crisis.
The Strait of Hormuz, located between Oman and Iran, is one of the world’s most strategic oil transit points, with a significant share of global oil passing through it daily.
Rising tensions between the United States and Iran have heightened fears of potential disruptions, keeping global energy markets on edge despite the waterway remaining open.
The debate comes amid growing public anger over high fuel prices in Kenya, which has triggered transport disruptions and protests in parts of the country.
Meanwhile, the Energy and Petroleum Regulatory Authority (EPRA) recently announced a mid-cycle adjustment of fuel prices, reducing diesel by Ksh 10.06 per litre while increasing kerosene by Ksh 38.60, with petrol prices remaining unchanged.
This brings retail prices to Ksh 214.25 for super petrol, Ksh 232.86 for diesel, and Ksh 191.38 for kerosene.
