Old monthly fuel tender was better

In Summary
  • The government-to-government oil purchase arrangement was set up with Saudi Arabia last year 
  • Kt replaced the Open Tender system where oil markets bid each month to xsiupply fuel to Kenya
An oil tanker sails into the Port of Mombasa.
An oil tanker sails into the Port of Mombasa.
Image: FILE

Is Anne Njeri genuine or not? Government owes the public an explanation.

Njeri has insisted that her company Ann’s Import and Export Enterprises was the legitimate importer of a cargo of diesel worth Sh17 billion that arrived last week at Mombasa port.

However Njeri is not a registered oil marketer in Kenya. She claims she has links to a refinery in Russia although Russia is presently under international sanctions and is blacklisted from selling oil on the open market. She has not explained how she accessed Sh17 billion to pay for the fuel.

Last year government made a deal with the Saudi Arabian oil giant Aramco to supply all Kenya’s fuel with six month’s credit. Three local oil marketers were appointed to collect the fuel from Saudi – Njeri was not one of those.

Under the old system, local oil companies tendered each month to supply fuel three months later. This tender process guaranteed cheap prices and provided transparency.

In theory, the Aramco deal gives economies of scale as well as credit but the Njeri confusion raises questions over its transparency. Let’s go back to the old monthly tender system.

Quote of the day: Power has no limits.

The Roman emperor was born on November 16, 42 BC

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