President William Ruto has defended the government-to-government (G-to-G) fuel import arrangement, saying the framework has shielded Kenya from a deeper fuel and foreign exchange crisis amid ongoing global oil market disruptions.
Ruto said the arrangement has guaranteed uninterrupted fuel supply across the country while helping to stabilise pump prices and ease pressure on the Kenya shilling, despite volatility in the global energy market.
Speaking on Friday at State House Mombasa, the President said the G-to-G framework, introduced in 2023, had protected the economy from severe shocks that would otherwise have destabilised fuel supply and the foreign exchange market.
“Through the government-to-government fuel supply framework, we have secured guaranteed fuel supplies despite global supply chain disruptions, ensuring uninterrupted fuel availability across the country,” Ruto said.
He noted that before the arrangement was introduced, oil importers were forced to compete for United States dollars within short timelines under the spot market system, placing intense pressure on the local currency.
According to the President, the previous system contributed to rapid depreciation of the Kenya shilling and exposed the country to recurring fuel supply uncertainties whenever international prices surged.
“The arrangement has stabilised fuel pricing compared to the old spot market system, where prices fluctuated sharply every month,” he said.
Ruto maintained that the framework had become critical during periods of international crises affecting oil supply chains, saying Kenya would be facing a much more serious economic situation without it.
“Without it, the country’s situation would be much worse. There would be a major crisis of foreign currency and a major crisis of fuel supply,” he said.
The President added that the framework had enabled Kenya to access fuel on more flexible payment terms, reducing pressure on the country’s dollar reserves.
“The G-to-G arrangement has guaranteed supply even when we have disruptions and has made it possible for us to pay on terms that do not put pressure on our dollar reserves,” Ruto said.
His remarks come amid concerns over rising fuel prices linked to global tensions and supply disruptions in the international oil market.
Ruto accused some politicians of exploiting the global crisis for political mileage by presenting what he termed unrealistic alternatives to the current framework.
“I know there are those trying to turn these global crises into politics—people seeking to exploit public pain for political gain and pretending there are easy options,” he said.
The President said leadership required honesty and responsible decision-making rather than political opportunism during periods of economic difficulty.
“The reality is that no country can completely escape a global oil shock of this magnitude. Even advanced economies with far greater financial resources than Kenya are facing similar challenges,” Ruto said.
The government-to-government fuel import arrangement has remained a subject of political debate since its introduction, with supporters arguing it has stabilised the market, while critics question its long-term sustainability and transparency.
