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Economists and energy experts have pushed back against remarks by Energy Cabinet Secretary Opiyo Wandayi, dismissing claims that he was unaware of the ongoing crisis in the petroleum sector.
Speaking during a interview on KTN on Tuesday, April 7, 2026, economist Patrick Muinde criticised government-to-government (G-to-G) fuel deals, warning that such arrangements often breed scandals due to the lack of competitive procurement processes.
“Most G-to-G deals bypass proper competition, and that opens the door to inefficiencies and potential malpractice,” Muinde said.
Institute of Certified Public Accountants of Kenya (ICPAK) Chairman CPA Elizabeth Kalunda described the challenges in the energy sector as a systemic failure, urging accountability across the board.
“The key question is who is responsible for the problems in the energy sector. Everyone found culpable must be held to account,” she said.
Kalunda further criticised the opacity surrounding G-to-G agreements, noting that critical aspects of such deals remain unclear and fail to adequately address pressing concerns within the sector.
Petroleum and energy specialist Martin Chomba echoed similar sentiments, calling on the government to exercise caution in its engagement with fuel marketers.
At the same time, he warned that state intervention in fuel pricing without proper compensation mechanisms could destabilise the market.
“What we are experiencing right now is due to government intervention in fuel prices. But marketers must be compensated, no one will sell fuel at a loss in a commercial environment,” Chomba said.
He also highlighted Kenya’s vulnerability to global supply shocks, particularly its reliance on stability in the Middle East
“We enjoy fuel at the benevolence of peace in the Strait of Hormuz. Without that stability, we are exposed to global shocks. We cannot anchor our petroleum access on the assumption of perpetual peace in the region,” he added.
On taxation, Muinde argued that removing Value Added Tax (VAT) on fuel would act as an effective subsidy by directly lowering costs for consumers.
Kalunda noted that the largest component of fuel pricing between 50 and 55 per cent comes from the landed cost, which reflects the international purchase price.
“If global prices rise, the cost at the pump will inevitably increase,” she said, underscoring the direct link between international markets and local fuel prices.
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Economists and energy experts have
pushed back
against remarks by Energy Cabinet Secretary Opiyo Wandayi, dismissing claims that he was unaware of the ongoing crisis in the
petroleum sector.
Speaking during a interview on KTN on Tuesday, April 7, 2026, economist Patrick Muinde criticised government-to-government (G-to-G) fuel deals, warning that such arrangements often breed scandals due to the lack of competitive procurement processes.
“Most G-to-G deals bypass proper competition, and that opens the door to inefficiencies and potential malpractice,” Muinde said.
Institute of Certified Public Accountants of Kenya (ICPAK) Chairman CPA Elizabeth Kalunda described the challenges in the energy sector as a systemic failure, urging accountability across the board.
“The key question is who is responsible for the problems in the energy sector. Everyone found culpable must be held to account,” she said.
Kalunda further criticised the opacity surrounding G-to-G agreements, noting that critical aspects of such deals remain unclear and fail to adequately address pressing concerns within the sector.
Petroleum and energy specialist Martin Chomba echoed similar sentiments, calling on the government to exercise caution in its engagement with fuel marketers.
At the same time, he warned that state intervention in fuel pricing without proper compensation mechanisms could destabilise the market.
“What we are experiencing right now is due to government intervention in fuel prices. But marketers must be compensated, no one will sell fuel at a loss in a commercial environment,” Chomba said.
He also highlighted Kenya’s vulnerability to global supply shocks, particularly its reliance on stability in the Middle East
“We enjoy fuel at the benevolence of peace in the Strait of Hormuz. Without that stability, we are exposed to global shocks. We cannot anchor our petroleum access on the assumption of perpetual peace in the region,” he added.
On taxation, Muinde argued that removing Value Added Tax (VAT) on fuel would act as an effective subsidy by directly lowering costs for consumers.
Kalunda noted that the largest component of fuel pricing between 50 and 55 per cent comes from the landed cost, which reflects the international purchase price.
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“If global prices rise, the cost at the pump will inevitably increase,” she said, underscoring the direct link between international markets and local fuel prices.
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By Ronald Kipruto