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Breakdown: Raila Odinga Exposes Grand Scam in Kenya’s Oil Deal

Oil tanker
Photo/Courtesy

In a bombshell revelation, the Rt. Hon. Raila Odinga, former Prime Minister of Kenya, has exposed what he calls a “grand scam” surrounding the controversial oil deal initiated by Deputy President William Ruto’s government. In a statement released today, November 16, 2023, Odinga highlighted several alarming facts, branding the deal as corrupt and detrimental to the nation.

 

Falsehoods upon Falsehoods

Odinga pointed out five undeniable facts that contradict Ruto’s narrative:

 

  • Mischaracterization of the Deal: Contrary to Ruto’s claim of a Government-to-Government (G-to-G) deal, Odinga revealed that only the Ministry of Energy and Petroleum signed agreements with state-owned petroleum companies in the Middle East.

 

  • Unfulfilled Promises: Despite Ruto’s promises of reduced oil prices and improved exchange rates, the cost of oil has not decreased, the Kenyan shilling has fallen against the dollar, and the scarcity of the dollar persists.

 

  • Secrecy Surrounding the Deal: Odinga highlighted the lack of transparency, with only two documents made public so far, raising concerns about the true nature of the agreement.

 

Shady Business Practices

Odinga further exposed the questionable practices of the companies involved in the deal:

 

  • Inflated Prices: Oryx Energies, Gulf Energy, and Galana Oil Kenya Ltd, hand-picked distributors, sell oil to Kenyans at nearly twice the price from bulk suppliers.

 

  • Manipulation of Prices: Companies manipulate delivery date ranges to maximize prices, leading to inflated costs passed on to consumers.

 

  • Lack of Accountability: Odinga challenged Ruto to publish the Supplier Purchase Agreement between Middle East oil firms and their distributors in Kenya.

 

Economic Consequences

The former Prime Minister outlined severe economic consequences resulting from the deal:

 

  • Loss of Business: Landlocked countries are abandoning Kenya’s pipeline due to high costs, with Uganda shifting to the Central Corridor, impacting Kenya Pipeline Company’s revenue.

 

  • Job Losses and Economic Decline: Odinga predicted job losses, loss of foreign exchange, and revenue decline for the country, urging a return to the Open Tender System.

 

Demands and Calls for Action

Odinga concluded his statement with a set of demands:

 

  • Immediate Contract Cancellation: Ruto must cancel the contract and return to the Open Tender System for guaranteed supply and competitive pricing.

 

  • Ethics and Anti-Corruption Commission Investigation: Odinga urged a thorough investigation into the origins and beneficiaries of the deal.

 

  • Accountability: Those responsible for the deal should be surcharged and sacked.

 

  • Tax Restoration: The government must restore taxes to 8 percent, down from the 16 percent imposed by the Finance Act.

 

  • Transparency: Release the MoU between Kenya and Saudi Arabia/UAE, and make public the agreements and purchase details with oil companies.

 

  • Investigations: EACC, DCI, and KRA must investigate tax compliance and pricing models of the involved oil companies.

 

  • Public Briefing: A comprehensive brief on Uganda’s shift to the Tanzanian Central Corridor and its implications for the Kenya Pipeline Company is demanded.

 

The Smartie News team will continue to follow this developing story and provide updates as more information unfolds.


 

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Raila Odinga: A Legacy of Politics and Resilience

The Odinga Family Legacy

The story of Raila Odinga is deeply intertwined with his family’s rich political legacy, particularly that of his father, Jaramogi Oginga Odinga. Born on January 7, 1945, in the Nyanza region of Kenya, Raila was the second-born son of Oginga Odinga and Mary Juma. His father, Jaramogi Oginga Odinga, was a towering figure in Kenyan politics, known for his staunch advocacy for independence and his prominent role in the early years of Kenya’s post-independence era.

 

Oginga Odinga, born in 1911, was a prominent Luo leader who played a pivotal role in the struggle for Kenya’s independence from British colonial rule. He was a founding member of the Kenya African Union (KAU) in the 1940s, a political party that would later evolve into the Kenya African National Union (KANU), led by Jomo Kenyatta. Oginga Odinga’s influence within KANU grew, and he served as its vice president alongside Kenyatta, who became the first President of Kenya after independence in 1963.

 

A Rift in Ideology

However, ideological differences soon emerged between Oginga Odinga and Jomo Kenyatta. Odinga was a socialist and a proponent of a more equitable distribution of land and wealth. He believed that Kenya’s independence should lead to social and economic justice for all its citizens, particularly the marginalized communities.

 

In contrast, Kenyatta’s administration leaned more towards capitalism and favored the preservation of the traditional British colonial-era land tenure system. These ideological differences strained the relationship between the two leaders and eventually led to Oginga Odinga’s resignation as Vice President in 1966. This marked a turning point in Kenyan politics, as Odinga formed the Kenya People’s Union (KPU), becoming a prominent opposition figure.

 

Raila Odinga’s Early Political Journey

Raila Odinga’s political journey was heavily influenced by his father’s beliefs and the tumultuous political climate of the time. He received his education both in Kenya and abroad, earning a degree in Mechanical Engineering from the Technical University of Magdeburg in East Germany. He then returned to Kenya and became involved in political activism.

 

In the 1980s, Raila Odinga joined the clandestine pro-democracy movement that opposed the authoritarian rule of President Daniel arap Moi. His activism led to several arrests and detentions, but he remained resolute in his pursuit of political change. During this period, he emerged as a prominent figure in the Forum for the Restoration of Democracy (FORD), a political alliance that sought to challenge Moi’s one-party rule.

 

The 2007 Election Crisis

One of the most significant chapters in Raila Odinga’s political career was the 2007 presidential election in Kenya. He ran as the candidate of the Orange Democratic Movement (ODM) against the incumbent President Mwai Kibaki. The election results were hotly contested, with allegations of widespread irregularities and fraud. The ensuing violence claimed the lives of over 1,000 people and displaced hundreds of thousands.

 

Raila Odinga’s refusal to accept the election results and his call for peaceful protests against the government’s handling of the polls demonstrated his commitment to democracy and political change. Eventually, a power-sharing agreement known as the National Accord and Reconciliation Act was brokered, making Raila Odinga the Prime Minister and Kibaki the President, thus easing the tensions.

 

The Resilience of the Odinga Legacy

Raila Odinga’s political career has been characterized by resilience and determination. He has continued to be a prominent opposition figure in Kenyan politics, running for the presidency in subsequent elections and pushing for electoral reforms to ensure transparency and fairness in the country’s democratic processes.

 

The Odinga family’s political legacy remains strong, with Raila’s children also becoming involved in Kenyan politics. He has remained a vocal advocate for social justice, good governance, and the rule of law in Kenya. His journey, deeply rooted in the principles and struggles of his father, continues to shape the political landscape of Kenya and inspire generations of Kenyans who seek positive change and progress for their nation.