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Museveni Names Kenya Who Alerted Him About Fuel Middlemen Scheme

On his birthday address on September 20, Ugandan President Yoweri Museveni publicly credited Cyrus Jirongo. The former Kenyan MP had alerted him to pricing irregularities in Uganda’s fuel procurement arrangements.

Jirongo’s 2019 Alert Triggered Presidential Investigation

Around 2019, Jirongo raised serious concerns about middlemen inflating Uganda’s oil costs substantially. President Museveni then directed his energy minister to investigate the emerging fuel supply irregularities.

Museveni criticized some Kenyan media outlets for sensationalizing his comments on the fuel arrangement. He stressed that he had not himself leveled direct accusations of fraudulent activity. (16 words)

Middlemen Markup Inflated Prices by Nearly 60 Percent

Kenyan agents marked up oil prices by as much as 59 percent unfairly. Uganda purchased fuel through these middlemen instead of acquiring supplies directly from refineries.

Uganda Terminated the Deal and Shifted Partners in 2023

Despite Museveni’s intervention in 2019, the problematic arrangement persisted until Uganda ended it. Uganda then shifted its partnership to Vitol, an international bulk supplier with refineries.

Kenya’s Energy Cabinet Secretary Opiyo Wandayi defended the Government-to-Government oil deal as essential. The arrangement addressed a severe foreign exchange shortage that threatened Kenya’s economic stability.

President Ruto Receives Credit for Supporting Uganda’s Position

Museveni publicly thanked President William Ruto for supporting Uganda against domestic political resistance. The Kenyan government granted Uganda pipeline access with a significant 20.15 percent equity stake.

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