- The National Oil Corporation of Kenya (Nock) will be handed exclusive rights to import a third of all fuel products into the country.
- Pump prices have remained unchanged since November, with a litre of super petrol retailing at Sh177.30 in Nairobi
Oil marketing firms have filed a petition at the High Court challenging the planned international tender for a government-to-government oil importation deal.
In the application under certificate of urgency, marketers cite exclusion in the bidding process for the international tender to supply all petroleum products consumed in Kenya.
"This matter must be certified as urgent as the first respondent, (Ministry of Energy and Petroleum) has unprocedurally published a legal notice No. 3 of 2023 of the Petroleum Importation Rule," the application reads in part.
The dealers, through lawyer Ndegwa Njiru, say the plan by the government to pick a local oil marketer breaches the Open Tender System where marketers competitively bid.
The oil firms also allege that there was no public participation and stakeholder consultation before the publication of the rules, which is a breach of the constitution.
In the plan, the National Oil Corporation of Kenya (Nock) will be handed exclusive rights to import a third of all fuel products into the country.
If the sector regulator has its way, Nock will ship in 30 per cent of Kenya’s super, diesel, kerosene and cooking gas and which will be used to provide strategic stocks and avert shortage of the commodities mainly due to disruptions globally.
This is coming just days after five local banks were picked to issue letters of credit of up to Sh615 billion for fuel that Kenya will import on credit from the United Arab Emirates over a nine-month period.
Sources close to the deal told the Star that the five include KCB, NCBA, Absa Bank, Stanbic Bank, Co-op Bank and Africa Export-Import Bank (Afreximbank).
Kenya will from next month start importing diesel, super and jet fuel on credit for 180 days in a deal that government officials say is meant to ease a growing crisis in the foreign exchange market.
Under the deal, the local firm nominated by the ministry will import fuel and other marketers forced to buy for the local market and transit to neighbouring countries.
State officials have been guarded on how the shipment will affect fuel prices in Kenya amid concerns that the longer credit line could wipe out the benefits of buying diesel and petrol in large quantities.
Pump prices have remained unchanged since November, with a litre of super petrol retailing at Sh177.30 in Nairobi and diesel at Sh162 per litre, up from Sh106.99 and Sh96.40 respectively in February 2023.