Nairobi — National Assembly Majority leader Kimani Ichung'wah has dismissed the dossier by Azimio La Umoja One Kenya Leader Raila Odinga on Government-to-Government (G to G) oil deal between Kenya, Saudi Arabia and the United Arab Emirates as hot air.
In a quick rejoinder, Ichung'wah argues that Odinga himself acknowledged Kenya's agreement with Saudi and UAE's state-owned corporations, Aramco and ADNOC petroleum companies.
The NA majority leader described Odinga's claims as "propaganda."
"What Mr. Raila Odinga billed as a dossier is nothing short of hot air, political propaganda, and cheap street rumors. His purported dossier lacked substance and is evidently part of his usual propaganda rumor mills," he said.
Ichung'wah further poured cold water on Odinga's claims that the characterization of the oil deal as G-to-G was meant to shield some three Kenyan companies from paying 30 percent corporate tax.
He "dared" Odinga to table such evidence that the Gulf Energy, Galana Oil Kenya Ltd and Oryx Energies Kenya Ltd are not remitting their taxes
He clarified that the three companies are not agents of the Kenya government and are doing logistics on behalf of (Aramco and ADNOC) the two state corporations in Saudi and UAE.
He went on to explain that It is not the business of the Kenya government on who those corporations appoint as their Kenyan partners.
"Even under the Open Tender system, the three companies accounted for 80% of all oil imports in the country justifying their pick as the local logistics partners," he added.
In regard to Odinga's remarks on Dollar Exchange rate, Ichung'wah says Odinga should be "honest to Kenyans."
He further argues that the Odinga understands that there are many factors influencing the country's current foreign exchange reserve and consequently our exchange rate.
Ichung'wah further blamed the former regime led by ex-President Uhuru Kenyatta = for the current crises saying "under the handshake regime, they spent USD 2B of our foreign exchange reserve to artificially prop up the Kenyan shilling as was recently disclosed by Central Bank Governor, Dr Kamau Thugge."
According to Ichung'wah It is against this background that the Kenyan government negotiated for the G-to-G to solve "this problem created by Mr. Odinga and his handshake brother."
"It is therefore dishonest for a politician of Odinga's stature to seek to score cheap political points on the back of a problem he and his handshake partner created," he said.
He further blamed that rising fuel costs in the country to the spike in global oil prices on account of emerging wars in the oil-producing regions in the Middle East and Europe (The Israel - Gaza war and the Russia - Ukraine war).
He further explained that the supply cuts by oil-producing countries (OPEC), economic sanctions on Russia, an oil-producing country, and increasing demand for fuel for heating in the West with the onset of winter are all factors contributing to the spike in global oil prices.
On Thursday, Odinga demanded the cancellation of the G-to-G deal claiming it's a scam that has created a breeding ground for corruption in the country.
In his dossier on the government-to-government deal on oil importation which was entered in March this year, Odinga said other than keeping the cost of oil permanently high in Kenya, the deal was costing the country trade in petroleum with neighboring landlocked countries.
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"There was no G-to-G. 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. Why Ruto chose to characterize the deal as a G-to-G is the first red flag that points to mischief in this deal," he said.
He alleged that the government-to-government deal was not aimed at supplying oil on favorable terms but was a business deal to shield the three Kenyan companies from paying 30 percent corporate tax.
"Shielding the three companies from this tax is the reason Ruto told Kenyans that it was G-to-G. Your guess is as good as mine on who is pocketing the unpaid corporate tax. But the burden of the unpaid corporate tax is passed to Kenyans at the pump," Odinga said.
President William Ruto's government opted for government-to-government oil supply contracts in March this year after the shilling tumbled to record lows.
