Wandayi Defends G-to-G Deal as Key to Shielding Kenya from Fuel Supply Crisis

Kenya's Energy and Petroleum Cabinet Secretary Opiyo Wandayi has defended the government-to-government (G-to-G) arrangement for importing refined petroleum products, saying it helped shield the country from a potential fuel supply crisis.

The arrangement was introduced in response to severe US dollar shortages that had threatened the country's ability to secure adequate supplies of refined petroleum products.

When President William Ruto's administration took office in September 2022, Kenya was facing serious fuel supply challenges, with retail stations operating on minimal or no stocks.

The import bill for refined petroleum products stood at about $500 million, accounting for approximately 35% of the country's total import bill. The dollar shortage forced oil marketing companies to source foreign currency from multiple banks, creating additional demand and putting pressure on the Kenyan shilling.