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President William Ruto has defended the government-to-government (G-to-G) fuel import arrangement, saying it has protected Kenya from a more severe fuel shortage and foreign exchange instability amid ongoing global oil market shocks.
Ruto explained that the system has ensured a steady supply of fuel nationwide while helping to stabilise pump prices and reduce pressure on the Kenya shilling despite fluctuations in the global energy market.
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Speaking on Friday at State House in Mombasa, the President said the arrangement introduced in 2023 has helped cushion the economy from major disruptions that would otherwise have affected fuel availability and currency stability.
“Through the government-to-government fuel supply framework, we have secured guaranteed fuel supplies despite global supply chain disruptions, ensuring uninterrupted fuel availability across the country,” he said.
He noted that before the model was introduced, oil marketers relied on the spot market, where they competed for US dollars within short timeframes, putting heavy strain on foreign exchange reserves and the local currency.
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According to Ruto, that system contributed to sharp fluctuations in fuel prices and accelerated depreciation of the shilling whenever global oil prices rose.
“The arrangement has stabilised fuel pricing compared to the old spot market system, where prices fluctuated sharply every month,” he said.
The President maintained that the G-to-G framework has been crucial in cushioning the country during global energy crises, warning that the situation would be worse without it.
“Without it, the country’s situation would be much worse. There would be a major crisis of foreign currency and a major crisis of fuel supply,” he said.
He added that the arrangement has also eased pressure on dollar reserves by allowing more flexible payment terms for fuel imports.
“The G-to-G arrangement has guaranteed supply even during disruptions and has made it possible for us to pay on terms that do not put pressure on our dollar reserves,” Ruto said.
His remarks come at a time when fuel prices remain high due to international tensions and supply chain disruptions in the global oil market.
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Ruto also criticised some political leaders, accusing them of using the global fuel crisis for political gain by promoting what he termed unrealistic alternatives to the current system.
“I know there are those trying to turn these global crises into politics—people seeking to exploit public pain for political gain and pretending there are easy options,” he said.
He emphasized that no country is fully insulated from global oil shocks, noting that even advanced economies are facing similar challenges.
“The reality is that no country can completely escape a global oil shock of this magnitude. Even advanced economies with far greater financial resources than Kenya are facing similar challenges,” he said.
The G-to-G fuel import deal has remained a subject of national debate, with supporters crediting it for stabilising supply, while critics question its transparency and long-term viability.
