COFEK Secretary General Stephen Mutoro has urged the High Court to suspend a major oil storage deal. Mutoro made the remarks on Thursday, September 24, 2026.
The Consumers Federation of Kenya (COFEK) filed a petition at the High Court in Nairobi. The organisation wants to stop a 25-year agreement between KPRL and Gulf Energy E&P B.V. The deal covers crude oil storage and handling services.
Mutoro Calls for Immediate Court Action
Mutoro said the court should intervene before the agreement creates further obligations.
“We are urging the High Court to suspend implementation now,” Mutoro said.
He warned against allowing contractual rights to become difficult to reverse. He also raised concerns about Kenya’s strategic petroleum infrastructure.
COFEK argues that important details surrounding the agreement remain undisclosed. These include the criteria used to select Gulf Energy. The consumer lobby also wants the material terms of the contract disclosed.
Ksh93.68 Billion Deal Under Scrutiny
The agreement was signed on August 26, 2026. According to Kenya Pipeline Company, it could generate Ksh93.68 billion.
The projected revenue covers the agreement’s 25-year lifespan. However, KPC says the figure is not guaranteed.
Actual revenue will depend on crude oil throughput and applicable tariffs. The revenue will also depend on fixed service fees and qualifying variable costs.
COFEK Raises Transparency Concerns
COFEK has asked the court to examine how the agreement was awarded. The organisation wants the court to assess whether the process followed constitutional requirements.
These requirements include transparency, accountability and fair public procurement. COFEK has also cited Article 227 of the Constitution.
The article requires public procurement to follow transparent and competitive processes. Additionally, the petition references several other laws. These include the Public Procurement and Asset Disposal Act and Petroleum Act.
Deal Linked to Turkana Oil
The agreement forms part of Kenya’s plans to commercialise oil from Turkana. The South Lokichar Basin remains central to those plans.
Under the current arrangement, crude would move from Turkana towards Mombasa. The crude would then be stored at KPRL.
Afterwards, it would be exported through Kipevu Oil Terminal II Meanwhile, COFEK wants the High Court to suspend implementation.
The court will consider the legal and constitutional issues raised in the petition. The case has therefore placed the Ksh93.68 billion projected oil deal under judicial scrutiny.
