Senators to grill Ndung’u over controversial G-to-G oil deal

He is expected to divulge the terms and the duration of agreement with the Gulf countries.

In Summary
  • Ndung'u will indicate the nature of debts and projected timelines for their settlement.
  • He is also expected to state total savings the government has realised since the signing of the agreement.
Treasury cabinet secretary Njuguna Ndungú
Treasury cabinet secretary Njuguna Ndungú

National Treasury CS Njuguna Ndung’u is on Wednesday expected to appear before senators on the floor of the House to shed light on the controversial government-to-government oil deal.

The CS will provide detailed information on the G-to-G agreement between Kenya and the Gulf countries for the supply of fuel.

He is expected to divulge the terms of the agreement, the countries or entities involved and the duration of the agreement.

“What is the per-litre cost of oil under this agreement and how does this cost compare to the prevailing market rates?” reads a question Kisii Senator Richard Onyonka will ask.

Ndung’u will also state any discount or any other favourable terms the government has received as a result of the deal, indicating the total savings the State has realised since the signing of the agreement.

The CS will also give the reasons for any debt or financial obligations that may have accumulated from the time the government started purchasing oil through the G-to-G agreement.

Ndung'u will indicate the nature of debts and projected timelines for their settlement.

President William Ruto on Sunday told off Opposition leader Raila Odinga for casting aspersion on the government-to-government oil deal entered with Gulf countries.

The government entered the deal on March 10 with Saudi Arabia and the Kingdom of United Arab Emirates for supply of oil under a deferred mode of payment spread over 180 days.

The government opted for the deal to save the country from collapse owing to acute fuel shortage and problematic acquisition of dollars for prompt payment of oil products.

The deals were signed with Aramco Trading Fujairah FZE (ARAMCO), Abu Dhabi National Oil Company (ADNOC) Global Trading Ltd and Emirates National Company (Singapore) Private Ltd (ENOC).

The companies nominated Gulf Energy Limited, Galana Energies Limited and Oryx Energies Kenya Limited as their local oil marketing companies in line with the Master Framework Agreement. 

Ruto said that the government-to-government deal was to cushion Kenyans by giving oil marketing companies seamless transactions given the dollar shortage globally.

On November 16, Raila demanded the cancellation of the government-to-government deal claiming it’s a scam that has created a breeding ground for corruption in the country.

The Opposition chief demanded that the Memorandum of Understanding between the government and the Arab countries be made public as well as the tax returns filed by the three oil marketers chosen to sell the fuel locally.

"Then tell us why Epra's boss Mr Kiptoo was involved in the negotiation of these contracts yet he is the one also here fixing prices. If that is not corruption, I don't know what corruption is," Raila said.

Ndung’u will also explain why there has been a delay in the disbursement of funds to the National Health Insurance Fund (NHIF), which has led to the non-payment of approved claims of over Sh11.6 billion.

He is expected to provide timelines within which the funds will be released to the NHIF to enable timely payment of the approved claims to intended beneficiaries.

The CS will further explain measures the government put in place to ensure the expeditious disbursement of funds to pay the pending claims, pending the planned establishment of a Social Health Insurance Fund to replace NHIF.

Other CSs expected to appear before senators for questioning are Kipchumba Murkomen (Roads and Transport) and Ababu Namwamba (Youth Affairs and Sports).

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