Raila on Thursday went to great lengths to explain why he believes the fuel dealings by President William Ruto's administration are a rip-off and the reason behind the increasing pump prices.
The Azimio leader told an Upper Hill press conference there was never a government-to-government arrangement as stated by Ruto and the claim was all along a “big lie”.
Instead, he stated, powerful individuals within government entered into deals with private firms in the United Arab Emirates and Saudi Arabia to make a killing.
On the Kenyan side, the former PM named three firms, which he said were handpicked as distributors but are selling the commodity at twice the price from bulk suppliers.
“There was no G-to-G (government to government). Kenya did not sign any contract with Saudi Arabia or the UAE. Only the Ministry of Energy and Petroleum signed a deal with state-owned petroleum companies in the Middle East,” Raila said.
“Why Ruto chose to characterise the deal as a G-to-G is the first red flag that points to mischief in this deal,” he said.
“The cost of fuel shot up significantly after the deal. Why have things moved from bad to worse since the deal?”
President Ruto's government opted for what they announced as government-to-government oil supply contracts in March this year.
This happened after the shilling tumbled to a record low and the new strategy was aimed to, among other steps, to strengthen the Kenyan currency against the dollar.
This has yet to happen as the shilling continues in free fall against major currencies.
Raila poked holes in the deal saying the stated intention has not been realised.
He deplored that land-locked countries that depend on Kenya for oil are abandoning the pipeline because it has become too expensive.
Uganda has already announced it would no longer purchase petroleum products from Kenya because of exploitation by middlemen.
Apart from doubling the oil prices, Raila further said the oil companies buy at low prices and offload at higher prices with the cost passed to Kenyans.
These companies, Raila said, manipulate delivery date ranges so they can maximise on prices.
“Some of the companies charging the higher prices deliver more cargo than they were contracted to deliver, forcing Kenyans to buy more of the oil with inflated prices, hence, the permanent high prices of petroleum products,” he alleged.
He said one company has been allowed to sell oil at prices that had been inflated by 17 per cent.
The Ministry of Energy, he said, is complicit in the ‘rip-off’ with regular price reviews to allow the companies to quote higher prices.
“For instance, cargo that was bought in July when the price was low is allowed to quote higher August prices and pass the burden on to the consumer,” the ODM boss said.
Raila wants the President to cancel the deal between Kenya, the UAE and Saudi Arabia and wants Kenya to revert to the open tender system
He said the open tender system was not only efficient and accountable but was equally competitive and offered prices commensurate with international pricing models.
“The volume it ferries via Kenya Pipeline has dropped to 52 per cent, from 70 per cent. So, other than making petroleum products ever more costly, the deal is going to kill the Kenya Pipeline Company as soon as this year,” he alleged.
“As KPC loses business, it will charge more for its products to stay afloat, hence, the ever-rising cost of petroleum products.”
The Opposition chief also wants the Ethics and Anti-Corruption Commission and DCI to independently probe the deal, which he maintained is a scam.
“The Ethics and Anti-Corruption Commission needs to move in not to sanitise but to get to the bottom of how and why we got into this deal and who is benefiting from it,” he said.
Raila also wants EACC to go after those behind the deal that has resulted in skyrocketing fuel costs.
The ODM leader also urged the Ruto administration to make full disclosure of the deal, which he said is shrouded in secrecy.
The Opposition chief also urged detectives to probe the tax compliance of the three Kenyan firms involved in the deal, saying they have been evading tax at the expense of Kenyans.
On the Uganda issue, the Raila demanded a comprehensive brief on the implications for the future of the Kenya Pipeline Company by neighbouring Uganda’s move to obtain much of its petroleum through the Tanzanian Central Corridor.
The ODM leader also waded into the businesswoman Anne Njeri’s Sh17 billion oil saga, saying powerful forces are behind her.
He said Kenyans want to know the real person behind Njeri.
"You can have a good look at her. Someone is backing her up. Who is the person?" Raila asked.
Two importers are tussling over the ownership of the consignment that Njeri says is hers. The dispute has blocked a ship from offloading.
Raila was accompanied by Nyando MP Jared Okello and DAP-K boss Eugene Wamalwa during the press briefing at Jaramogi Oginga Odinga Foundation in Nairobi’s Upper Hill.
