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In a revelation that casts new light on Kenya’s much-publicised government-to-government fuel import deal, Gulf Energy has emerged as the biggest beneficiary of the State’s pump price stabilisation scheme—quietly pocketing a staggering Sh23.8 billion over just two financial years.
While Kenyans have grappled with soaring fuel prices and a cost of living crisis, a select group of oil marketing companies has been receiving multi-billion-shilling payouts from the Ministry of Energy and Petroleum—under the guise of cushioning the public from volatility.
The Billions Behind the Subsidy Curtain
At the very top of the list is Gulf Energy, one of three preferred importers under the G-to-G petroleum supply framework launched in 2023. According to data presented before the National Assembly Energy Committee, Gulf received:
- Sh14.32 billion in 2023/24
- Sh9.47 billion in 2024/25
This brings the total to Sh23.8 billion, nearly 40% of the total stabilisation funds disbursed in that period.
The payouts were sourced from the Petroleum Development Levy (PDL)—a charge of Sh25 per litre that every Kenyan motorist contributes to at the pump. Over the two financial years, the government collected Sh50.53 billion from this levy. Nearly half of it was channelled to just three companies: Gulf Energy, Galana Energies (Sh4.65 billion), and Oryx Energies (Sh218.56 million).
A Six-Firm Payday
The 2024/25 financial year alone saw six oil marketing firms share Sh13.69 billion in stabilisation funds:
- Gulf Energy – Sh9.5 billion
- Galana Energies – Sh1.85 billion
- Texas Energy – Sh1.65 billion
- Oryx Energies – Sh1.11 billion
- One Petroleum – Sh998.4 million
- Asharami Synergy – Sh257.8 million
Together, these six firms received the lion’s share of a fund that is meant to protect Kenyan consumers—but is now raising questions about transparency, equity, and who the real beneficiaries of the subsidy scheme are.
The G-to-G Deal: A Billion-Dollar Pipeline
The stabilisation payouts come against the backdrop of Kenya’s 2023 government-to-government deal with oil giants Saudi Aramco, Emirates National Oil Company, and Abu Dhabi National Oil Company. The Ministry of Energy touts the arrangement as a win: easing forex pressure and ensuring stable supply through a 180-day deferred payment plan.
Energy CS Opiyo Wandayi, appearing before Parliament, reported that Sh1.6 trillion worth of petroleum has been imported under the G-to-G framework, delivered via 170 cargoes totalling 14.67 million tonnes.
He also claimed the deal had successfully brought down freight and premium charges. However, as Kenyans continue to pay Sh186.31 per litre for Super Petrol in Nairobi (compared to Sh148.14 in Dodoma and Sh183.24 in Kampala), the public is left wondering: who is the subsidy really stabilising?
Questions Demand Answers
The Energy Committee had requested detailed disclosures: how much has been collected under the levy, how it has been spent, who has been paid—and crucially, whether any balance remains. These details are now under scrutiny as Parliament seeks clarity on whether the fund is serving its intended purpose or has become a windfall for a few well-positioned firms.
As the government prepares to pump another Sh25 billion into fuel stabilisation in 2025/26, the optics are damning: while households and businesses shoulder the economic weight of high fuel costs, a handful of oil marketers walk away with billions.
