Raila-Linked Firm Benefited From G-to-G Fuel Import Deal

A company linked to the family of the late Former Prime Minister Raila Odinga has emerged among beneficiaries of Kenya’s government-to-government (G-to-G) fuel import arrangement, raising fresh questions over the structure of the multi-billion shilling supply programme.

BE Energy, in which the Odinga family holds a 35 per cent stake, is among oil marketers that have recently imported petroleum products under the deal between the government and three Gulf-based suppliers- Saudi Aramco, Abu Dhabi National Oil Company and Emirates National Oil Company.

Under the arrangement introduced in March 2023, Kenya moved away from an open trader system to a framework where selected local firms source fuel from the Gulf companies on a 180-day credit plan before distributing it to downstream retailers.

Industry data shows that BE Energy secured contracts to import two diesel cargoes totalling 85,000 tonnes in the March-April cycle. Other allocations included One Petroleum with 115,000 tonnes, while Gulf Energy handled the bulk of shipments amounting to 723,000 tonnes covering diesel, jet fuel and petrol.

A shipment schedule indicates that BE Energy’s consignments were planned for delivery between March 18 and April 3 in two separate cargoes sourced from Saudi Aramco.

“Cargo delivered in 2 (two) shipments, first parcel delivered ahead of the date range. Supplier has advised that the cargo will be delivered jointly with part KG06A/2026 (vessel ID). Balance shall be delivered ex vessel MT Redan, loading dates and port to be advised,” said the documents.

The G-to-G deal allows Kenya to defer payment for fuel imports for up to six months, easing pressure on foreign exchange reserves by reducing the need for immediate monthly payments estimated at about $500 million. The government has defended the arrangement, citing improved credit terms and renegotiated supplier margins.

BE Energy’s inclusion in the supply chain follows a period of shifting political dynamics, including a cooperation agreement between President William Ruto and the late Raila Odinga in 2025. The firm has also steadily expanded its footprint in Kenya’s petroleum market, increasing its share from 2.4 per cent to over 3 per cent in recent years.

Regulatory data places BE Energy among the country’s top oil marketers, behind major multinational players such as Vivo Energy (Shell), Rubis Energy and TotalEnergies.

Beyond Kenya, the company exports petroleum products to regional markets including Uganda, Rwanda, Burundi, South Sudan and the Democratic Republic of Congo.

Ownership records show that the Odinga family’s stake is held through Pan African Petroleum Company Ltd, alongside majority shareholders linked to a Saudi Arabian investor.

The development comes amid heightened scrutiny of the G-to-G fuel framework, with critics raising concerns over transparency and the concentration of over transparency and the concentration of supply opportunities among a limited pool of firms.