EPRA Explains Why National Oil and KPC were excluded from G-to-G fuel deal

File image of KPC Tank

The Energy and Petroleum Regulatory Authority (EPRA) has clarified why the National Oil Corporation of Kenya (NOCK) and the Kenya Pipeline Company (KPC) were excluded from the Government-to-Government (G-to-G) fuel importation deal, saying the decision was driven by international oil suppliers.

Speaking during a television interview on Wednesday, April 15, 2026, EPRA Director Edward Kinyua said global oil firms declined to engage directly with unfamiliar entities due to the financial risks involved in handling high-value cargo.

“If I’m placing a ship worth 100 million dollars into the water and I don’t know my counterpart, what happens if anything happens to that cargo?” Kinyua posed.

He explained that the government had initially proposed NOCK as the local counterpart under the G-to-G framework. However, international suppliers rejected the proposal, opting instead to work with companies they already had established relationships with.

This led to the selection of private firms such as Oryx Energies, Galana Energies Limited and Gulf Energy Limited. Additional firms, including One Petroleum Limited, Asharami Synergy and Be Energy, were later brought on board.

Kinyua also noted that KPC could not participate in the arrangement, as its mandate is limited to transportation and storage of petroleum products, not importation or commercial trading.

“Kenya Pipeline is not a trader; their work is transportation of petroleum,” he stated.

He added that the G-to-G deal was introduced as an emergency measure in 2022, when oil marketers faced a severe dollar shortage that made it difficult to sustain imports under the open tender system.

According to Kinyua, more than 145 oil marketers were previously required to source dollars and settle payments within five days of cargo arrival, placing immense pressure on the foreign exchange market.

“The amount of money the private sector spends in terms of oil payment per month is to the tune of 500 million dollars,” he said, noting that the shortage had escalated into a crisis.

He revealed that President William Ruto convened key stakeholders after being briefed on the dollar liquidity crunch, leading to the adoption of the G-to-G model—an approach he said has since drawn interest from other countries.

The explanation comes amid growing criticism from leaders, including former Attorney General Justin Muturi and Kiharu MP Ndindi Nyoro, who have questioned the structure of the deal.

Nyoro, who was part of the interview panel, claimed certain firms were benefiting disproportionately, alleging they take a share of the KSh17 per litre margin in addition to gains from landed costs.

“The people profiting from G-to-G and the margins of oil in Kenya is KSh17, and they’re taking a slice of that and another from the landing cost. Those people are part of this government,” Nyoro claimed.

He further alleged that the inclusion of Be Energy in the deal followed political developments in 2024, suggesting it was part of a reward system.

Despite the criticism, EPRA maintained that the structure of the deal was largely shaped by the risk considerations and preferences of international oil suppliers.