Oil firms have filed a petition at the High Court challenging the planned international tender for a government-to-government oil importation deal.
In the application under certificate of urgency, marketers cite exclusion in the bidding process for the international tender to supply all petroleum products consumed in Kenya. They say the plan by the government to pick a local oil marketer breaches the Open Tender System where marketers competitively bid.
The oil firms also allege that there was no public participation and stakeholder consultation before the publication of the rules, which is a breach of the constitution.
In the plan, the National Oil Corporation of Kenya (Nock) will be handed exclusive rights to import a third of all fuel products into the country.
Read: How Russia Oil Supply Cut Will Increase Fuel Prices In Kenya
If the sector regulator has its way, Nock will ship in 30 percent of Kenya’s super, diesel, kerosene, and cooking gas and which will be used to provide strategic stocks and avert shortages of the commodities mainly due to disruptions globally.
This is coming just days after five local banks were picked to issue letters of credit of up to Sh615 billion for fuel that Kenya will import on credit from the United Arab Emirates over a nine-month period.
Kenya will from next month start importing diesel, super, and jet fuel on credit for 180 days in a deal that government says is meant to ease a growing crisis in the foreign exchange market. Under the deal, the local firm nominated by the ministry will import fuel, and other marketers forced to buy for the local market.
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