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Raila's 10 demands to Ruto over Kenya-Saudi Arabia oil deal

Opposition leader wants government to  restore taxes to 8 per cent from the 16 percent.

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by MAUREEN KINYANJUI

News16 November 2023 - 11:10
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In Summary


  • • Raila has called upon EACC to probe how Kenya got into the alleged oil deal with Saudi Arabia.
  • • Early this week, Uganda chose Dar es Salaam port in Tanzania as its entry point for its oil imports.
Nyando Member of Parliament Jared Okello and ODM party leader Raila Odinga during a press Conference at Jaramogi Oginga Odinga Foundation on November 16,2023

Opposition Chief Raila Odinga has listed 10 demands following the alleged oil deal between Kenya and Saudi Arabia.

On Thursday, the ODM Party leader claimed that Kenya did not sign any deal with the government of Saudi Arabia as announced by President William Ruto in April this year.

As a result, Raila has issued 10 demands that should be met by the President and his government.

The former prime minister wants President Ruto to immediately cancel the contract and revert to the Open Tender System which ensures a guaranteed supply of petroleum products.

He argued that the open tender system was efficient, accountable and competitive and offered prices commensurate with an international pricing model.

Raila has called upon EACC to probe how Kenya got into the alleged oil deal with Saudi Arabia.

"The Ethics and Anti-Corruption Commission needs to move in not to sanitize but to get to the bottom of how and why we got into this deal and who is benefiting from it," he said.

The ODM party leader has also called upon Ruto's administration to  make public the so-called Memorandum of Understanding between Kenya Saudi Arabia and the United Arab Emirates.

The Azimio principal further wants the Kenya Kwanza government should give a  comprehensive brief on what the move by Uganda to pursue much of its petroleum needs through the Tanzanian Central Corridor means especially to the future of the Kenya Pipeline Company.

Early this week, Uganda chose Dar es Salaam port in Tanzania as its entry point for its oil imports.

This was done to foster the relationship between both East African countries. 

The move also preceded Uganda’s decision to end its dependence on Kenya for its oil imports.

Going further, Raila also calls for the sacking of people who came up with the Kenya- Saudi Arabia deal.

Addressing the Davis Chirchir-led Energy ministry, the Opposition Chief wants the deal it signed with the oil companies to be made public.

"Also, the Ministry of Energy and Petroleum must make public the Supplier Purchase Agreement signed with the oil companies," Raila added.

Kenya's investigative bodies;  EACC and the Directorate of Criminal Investigations have been asked to investigate the tax compliance status and pricing model of the three oil companies.

In addition to that, Raila has turned to the taxman, Kenya Revenue Authority,  to come clean on the tax compliance status of the three oil companies.

"KRA should also explain why they are being enabled to evade billions in taxes while ordinary Kenyans are being harassed for taxes," he added.

Lastly, the Opposition leader wants the government to restore taxes to 8 per cent from the 16 per cent that came with the Finance Act.

Kenyans have been facing tough economic times after a majority of Members of Parliament in June approved the contentious proposal in the Finance Bill, 2023 to have Value Added Tax (VAT) on fuel increased from the current eight per cent to 16 per cent.

After a heated debate that saw Azimio and Kenya Kwanza MPs lock horns in the House, 184 MPs voted in favour of the increase in VAT to 16 per cent against 84 who opposed the amendment, setting the stage for what could see the cost of fuel rise by more than Sh10.

Azimio opposition coalition MPs who largely opposed the proposal to increase the VAT on fuel to 16 per cent argued that the move would adversely affect the cost of living.

However, President William Ruto assented to the Finance Bill, 2023 which became law and is currently being implemented.

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