By: Reuters

Kenya's energy minister on Friday defended the country's government-to-government (G2G) fuel-supply deals with Middle Eastern countries following calls from ​opposition parties to scrap them.

Energy and Petroleum Minister Opiyo ‌Wandayi said the arrangement had stabilised fuel supplies and allowed fixed freight and insurance costs despite global market fluctuations.

He said the East African country's ​fuel supplies were secure and stable, with the G2G framework ​providing a valuable buffer as the U.S.-Israeli war on Iran ⁠drags on.

Wandayi said the current framework had allowed more scope ​to source fuel cargoes from different international supply points, including ​Europe, the U.S. Gulf coast, India and the Red Sea region.

Earlier in the week, Finance Minister John Mbadi described calls by opposition parties to end ​supply agreements with major Gulf suppliers - including Saudi Aramco and ​ADNOC of the United Arab Emirates - as "irresponsibility of the highest order."

Some opposition politicians ‌have ⁠argued the supply deals are opaque and have not secured competitive prices.

Kenya typically imports nearly all of its fuel products from the Middle East via the G2G deals.

It raised domestic fuel prices ​in April and ​May in ⁠response to the global surge in energy costs linked to the Iran war, piling pressure on ​households already battling high living costs.

Data on Friday ​showed inflation (KECPI=ECI), rose ⁠sharply in May for the second month running, driven by fuel.

Transport operators went on strike last week over the fuel price hikes. They ⁠called ​off their strike after the government pledged ​to cut diesel prices in June.