Mwaura Defends G-to-G Fuel Deal, Cites Stable Supply, Stronger Shilling and Subsidies Cushioning Kenyans

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Government Spokesperson Isaac Mwaura has defended the Government-to-Government (G-to-G) fuel import model, terming it a critical intervention that has stabilized Kenya’s fuel supply and shielded the economy from global shocks.

Speaking on Thursday, April 16, 2026, at Harambee Annex in Nairobi, Mwaura said the G-to-G framework was introduced in response to a fuel crisis inherited in 2022, marked by widespread shortages, volatile prices, and a crippling shortage of US dollars.

He noted that the previous spot-buying system had opened the door to manipulation by market players, resulting in artificial shortages and increased pressure on foreign exchange. The G-to-G model, he explained, eliminated middlemen by enabling direct procurement from global oil giants, allowing the government to negotiate prices in advance and ensure structured, predictable fuel imports.

According to Mwaura, the arrangement has delivered consistent fuel supply over the past three years, with Kenya now emerging as a model for other countries exploring similar systems. He added that the program has reduced speculative demand for the US dollar, contributing to a stronger shilling, lower inflation, and improved foreign exchange reserves.

Addressing concerns over the MV Paloma shipment, Mwaura dismissed it as an isolated case, emphasizing that the cargo was excluded from pricing calculations to protect consumers from higher costs. He maintained that overall, the G-to-G framework has secured fuel at more competitive rates.
On measures to cushion Kenyans from high fuel prices, Mwaura outlined several government interventions, including capping diesel prices below Ksh 230 per litre. He revealed that a Ksh 6.2 billion stabilization fund has been deployed through the Petroleum Development Levy to absorb rising costs.
Additionally, the government has reduced VAT on petroleum products from 16 percent to 8 percent and continues to offer fuel subsidies to ease the burden on households and businesses. While acknowledging the presence of fuel levies, Mwaura said they remain essential for financing infrastructure projects, particularly road development, which in turn supports economic growth.
He reiterated that claims dismissing the benefits of the G-to-G model are misleading, insisting that the policy has brought much-needed stability, predictability, and relief to Kenya’s fuel sector.

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