Four accounting officers of the Ministry of Energy, the Energy and Petroleum Regulatory Authority (Epra) and the Kenya Pipeline Company are under investigation for allegedly helping trigger a fuel shortage in the country and adulterated fuel.
Petroleum Principal Secretary Mohammed Liban and his employee Joseph Wafula, Epra Director-General Daniel Kiptoo and Kenya Pipeline Managing Director Joe Sang were picked up by Directorate of Criminal Investigations (DCI) officers.
They were detained at different police stations before being transferred to DCI headquarters along Kiambu Road on Friday afternoon.
More officials are being sought by the DCI as part of a broader probe into suspected interference within the petroleum supply chain.
In an operation that sources say started on Thursday night, the suspects were picked up from their homes, where unspecified amounts of money and documents were recovered to aid the probe.
Multiple police sources said the four are facing charges under the Economic Crimes Act, particularly related to failing to keep records, stocks and reserves of petroleum products. The holding of that consignment, detectives reckon, disrupted fuel supplies and triggered a shortage, leading to its wrongful attribution to the Iran crisis.
At the centre of the matter are claims that the consignment had elevated levels of Sulphur, which are not compliant with Kenya’s standards, raising questions on its viability for use in the market.
This issue, according to investigators, was flagged by a KPC quality assurance manager who, after conducting quality checks on the fuel, stopped it from being distributed and subsequently informed higher authorities of the anomaly.
This matter triggered internal pressure and disagreements over whether the product should be released into the system, before the matter was escalated to investigators.
The timing of this development comes at a time when the country is facing increased worries over the stability of fuel supply. Kenya heavily relies on Gulf countries' oil suppliers including Saudi Aramco, Abu Dhabi National Oil Company (Adnc) and Emirates National Oil Company (Enoc) to stabilise supply and ease pressure on foreign exchange demand through a government-to-government agreement.
The arrangement, which has faced a lot of scrutiny from Kenyans over its procurement process and pricing, has since been extended to 2027/2028. It has been crucial in cushioning the country against global oil price shocks.
Speaking before the Senate earlier this week, Energy Cabinet Secretary, Opiyo Wandayi said the three international oil companies that have been supplying Kenya with petroleum products are free to source products from outside the war-torn Middle East.
Days before this revelation, CS Wandayi had ordered oil marketers to release hoarded fuel to the market, warning that withholding stocks is illegal and against public interest.
CS Wandayi orders oil marketers to stop hoarding fuel
He said that the government is aware of reports that some oil marketing companies are holding back products in anticipation of price changes. He described such practices as “commercially opportunistic, counter to the public interest, and in direct breach of licensing obligations.”
“All licenced oil marketing companies are strongly reminded of their legal obligation to maintain continuous supply and release products at gazetted prices,” he said.
He, however, cautioned that rising geopolitical tensions could begin to exert pressure on fuel prices in the coming cycles, even as the government moves to cushion consumers.
President William Ruto has also acknowledged growing global economic pressure linked to conflict in the Middle East, saying the government is closely monitoring developments and working with key agencies to manage potential spillover effects. The government also said it will deploy Sh17 billion from the petroleum stabilisation fund to moderate pump prices over the next three months, alongside possible tax adjustments aimed at softening the impact on consumers.
For now, the government maintains that fuel supply remains stable for now as investigations continue into the alleged artificial shortage and quality concerns within the supply chain.
