Three companies alleged  of distortion in the government to Government oil deal by Raila Odinga has dismissed the accusations of being involved in inflating the prices of fuel in Kenya.

According to their statement,Oryx Energies,Gulf Energy and Galana energy opposed the claims that there was no memorandum of understanding signed in the Government to Government oil deal.

However,the companies states that there is an MOU between the government  and the IOCs that  is supported by long – existing bilateral trade relations between Kenya and these countries.

The opposition leader accused the companies of inflating fuel prices where the companies indicates that the price of fuel is determined by international factors.

The companies said that there was a rise in fuel prices that concur with the start of the G-to-G supply.

“The local cost of fuel is determined by international oil prices ,the prevailing forex rate and applicable taxes,”the companies noted adding that,

“The global oil prices have been steadily rising due to the global post -Covid recovery in demand ,and certainly more with geopolitical challenges over the last 18 months,”Companies said in the statement.

The statement further noted that the world prices have been rising from Quarter 2 of 2023 which coincided with the start of the deal.

The companies goes on and refute the claims that they have been exempted from paying the 30 per cent corporate tax,indicating that they have been paying all relevant taxes.

“There is no exemption from payment of any tax(no tax exemption has been sought by the nominated OMCs,nor has the GoK offered any).

The Kenya companies involved in the G-to-G supply pay their corporate taxes,and all other taxes like any other organizations,”said the companies.

Opposition leader Raila Odinga last week identified the Kenya Kwanza government deal a major scam that was driving up the cost of fuel.

This has led to president William Ruto to hit back at the statement said by Azimio leader saying that the state does not act as a broker in the oil procurement business, but it’s responsibility in ensuring oil transactions occur without any hindrance.

“The purpose of the government is two fold,to assure international oil companies that they can extend products to Kenya for six months and that after six month we are going to pay and we have kept our part of the bargain,”president Ruto said.

Ruto added that the government has given the companies the assurance that dollars will be available to them.

“We also gave them the assurance that dollars will be available to them and we have made sure that is the case.the rest is private Business,”

he added saying that the state is not a broker or an in- Between so the entire process private sector- led.