The government has defaulted on fuel subsidy billions that continue to be paid under a cloud of secrecy, sparking disquiet among the oil marketing companies ahead of the fresh pricing review to be effected from midnight.
The Business Daily has learnt that oil marketers are grappling with delays in the compensation after they took a cut for keeping pump prices low.
A number of chief executives who requested anonymity said that the government has not paid a single cent for the December-January review that lapses today in addition to other pending payments for November last year.
Sources at the Oil Marketers Association of Kenya (Omak), the industry lobby, have revealed that they now want the government to pay interest on the delayed funds, in what will come with another cost to taxpayers.
Documents seen by Business Daily shows that oil dealers were paid Sh1.753 billion for two shipments in the November-December cycle while two others are pending.
The delays have pushed marketers into cash-flow hitches especially the independent firms who tap bank loans to pay for the fuel and foot distribution costs.