President William Ruto has come out to explain the role of the government in the government-to-government oil importation arrangement after the dossier by Opposition Chief Raila Odinga.
Speaking during an executive retreat in Nairobi on Friday, November 17, Ruto asserted that the government was not in any way playing the broker role in the deal.
Instead, he explained that the government’s role was to give international oil companies the confidence needed in extending six-months credit facility to Kenya.
Further, Ruto stated that the government also sought to guarantee international oil companies that Kenya would be able to raise the required dollars upon the lapse of the credit period.
“The only purpose of the government is twofold- to guarantee international oil companies that they can extend products to Kenya for six months and that after six months we will pay and we have kept our part of the bargain,” Ruto stated.
“Our business as a government is to underwrite that this transaction will not go haywire.”
A firm President Ruto then told off critics of the deal including the opposition terming their sentiments as speculations and “rumormongering”.
The President also affirmed that the government would not be intimidated by the critics.
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Response to critics
He challenged those doubting the transparency of the deal to scrutinize the documents and agreements signed between the government and the oil companies- which according to him are accessible in public.
In his speech, Ruto maintained that Kenya would have been forced to take the subsidies route had the government not made the G-to-G arrangement.
“I can confirm to the country that the G-to-G petroleum products engagement with our international oil companies is above board, transparent, and has made the biggest difference in our country,’ Ruto stated.
According to him, the government has already kept its part of the bargain in having paid for the first phase of the arrangement.
To concerns about the latest the performance of the Kenyan Shilling, Ruto maintained that he would not be coerced into making short-term fixes.
According to him, the Kenya Kwanza’s plan of stabilizing the Shilling will be anchored on increasing exports- both labor and products- as opposed to using the country’s foreign exchange reserves to make quick fixes.
Oil marketing companies also responded to transparency questions raised regarding the G-to-G deal.
In a 12-page response on Friday- the OMCs noted that the deferred system of payment for oil imports was meant to help the government reduce the pressure on dollar liquidity.
According to the response, the delayed payment helped to eliminate the dual risk of stock-out and forex speculation in the country.
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Raila’s demands to Ruto on G-to-G
His statement came at a time when the opposition was piling pressure on the government regarding various economy-related concerns.
In a press conference on Thursday, November 16, Raila Odinga poked holes in the policies adopted by the Ruto regime.
Raila mentioned that G-to-g had complicated the state of oil products and that Uganda had withdrawn from the arrangement of importing its oil through Kenya due to miscalculations in the policies.
As such, Raila demanded the suspension of the deal and dismissal of government advisors behind the G-to-G idea.
