A man fuels a car at a petrol station

The Motorists Association of Kenya (MAK) has called for a forensic audit of Kenya’s Government-to-Government (G-to-G) petroleum import arrangement following remarks by Ugandan President Yoweri Museveni on the use of intermediaries in fuel procurement.

‎Museveni said on Saturday that Uganda had been buying petroleum products through middlemen in Kenya, a revelation he said prompted his government to review its procurement model.

He said the change had resulted in lower import premiums for petroleum products. 

‎In a statement, MAK said the remarks had raised fresh questions about Kenya’s fuel importation, pricing and distribution system.

‎“We thank President Museveni. He has vindicated concerns that motorists and consumers have been raising for years,” the association said.

‎MAK questioned how intermediaries featured in an arrangement described as government-to-government, and called for disclosure of the companies involved, commissions paid and the pricing mechanisms used.

‎“The question Kenyans must now ask is simple: If governments were supposedly buying directly from governments, why were middlemen sitting between governments and the petroleum suppliers? Who benefited from this arrangement, and at whose expense?” it said.

‎The association said the concerns warranted a full, independent and transparent investigation into Kenya’s petroleum importation and pricing arrangements.

‎It called for a forensic audit covering all intermediaries, commissions, contracts, pricing formulas and beneficiaries associated with the G-to-G system.

‎MAK also demanded disclosure of the actual landed cost of every petroleum cargo, the parties involved and all margins added before fuel reaches consumers.

‎The association further called for an independent review of the Energy and Petroleum Regulatory Authority’s pricing framework and its independence.

‎EPRA currently uses a statutory formula to determine maximum wholesale and retail prices.

The formula incorporates the landed cost of petroleum products alongside transport, storage, retail margins, taxes and other approved costs.

‎MAK said every component of the formula should be independently verified and protected from political or commercial interference.

‎It said high fuel costs have wider consequences because petroleum products are an input in transport, food production, construction and other sectors.

‎“Kenyan motorists have effectively become the shock absorber of an opaque fuel-pricing system,” the association said.

‎MAK also called for prosecution and recovery of public funds if investigations establish fraud, abuse of office, unlawful enrichment or other criminal conduct.

‎The association said its demands were aimed at accountability rather than subsidies or other concessions for motorists.

‎“MAK is not asking for charity. We are demanding accountability, transparency and a fair fuel price,” it said.

‎“President Museveni has opened the door. Kenya must now walk through it.”

‎Kenya introduced the G-to-G fuel import arrangement in 2023, with the government saying it was intended to ease foreign-exchange pressures and provide greater stability in petroleum supplies.

The framework involves Gulf suppliers and nominated Kenyan oil marketing companies in the supply chain.