Kenya’s government-to-government (G-to-G) fuel import framework is drawing renewed scrutiny following the emergence of BE Energy as one of the beneficiaries of the supply arrangement. The firm, in which the family of the late Raila Odinga holds a 35 percent stake, has recently participated in fuel import allocations alongside established industry players.
The G-to-G agreement, initiated in March 2023, replaced the open tender system that previously allowed oil marketers to competitively bid for monthly import rights. Under the current structure, Kenya sources fuel from three Gulf-based suppliers Saudi Aramco, Abu Dhabi National Oil Company, and Emirates National Oil Company on 180-day credit terms, easing immediate foreign exchange pressures that previously required about $500 million monthly for imports.
Within this framework, a lead importer typically Gulf Energy handles the bulk of shipments, while a rotating group of marketers shares the remaining allocations. In the March–April shipment cycle, BE Energy secured two diesel cargoes totaling 85,000 metric tonnes, while One Petroleum handled 115,000 tonnes, and Gulf Energy took the largest share with 10 cargoes amounting to 723,000 tonnes of diesel, jet fuel, and petrol.
Documentation indicates that BE Energy’s consignments were split into 45,000 metric tonnes, delivered between March 18 and March 20, and 40,000 metric tonnes, scheduled between April 1 and April 3. Both cargoes were sourced from Saudi Aramco, underscoring the firm’s integration into the state-backed supply chain.
The inclusion of BE Energy in the G-to-G arrangement followed a broader political realignment, culminating in a cooperation agreement between President William Ruto and Raila Odinga in March 2025. This development has raised concerns about market fairness and the potential influence of political connections in commercial allocations, particularly in a sector as strategic as energy.
At the same time, BE Energy’s participation reflects its growing footprint in Kenya’s petroleum market. The firm’s market share increased from 2.4 percent in 2020 to 3.1 percent in 2022, and further to 3.17 percent in the six months to December after selling 99.95 million litres of fuel products. It is currently ranked as the seventh-largest oil marketer, trailing multinational firms such as Total Energies, Rubis Energy, Vivo Energy, and Ola Energy.
Ownership structures further highlight the intersection of business and political influence. The Odinga family holds its stake through Pan African Petroleum Company Ltd, while the majority ownership lies with the family of Saudi businessman Sheikh Abdul Kader Al Bakri via International Energy World S.A. Within the Odinga family, shareholding is distributed among multiple members, including direct stakes of 8.75 percent each for Raila Odinga and Ida Odinga, alongside smaller allocations to their children.
Beyond domestic operations, BE Energy has expanded regionally, exporting petroleum products to markets such as South Sudan, Uganda, Rwanda, Burundi, and the Democratic Republic of Congo. This diversification aligns with Kenya’s broader role as a regional energy hub.
The renewal of the G-to-G deal for an additional two years from the end of 2025, coupled with renegotiated lower margins, signals the government’s continued reliance on this framework to stabilize fuel supply and manage foreign exchange exposure. However, the participation of politically connected firms introduces questions around transparency, competitive neutrality, and long-term market structure.
Overall, BE Energy’s inclusion in the fuel import system illustrates both the evolving dynamics of Kenya’s petroleum sector and the complex interplay between policy, market access, and ownership structures.
