Four top petroleum officials were arrested Thursday night as detectives launched investigations into a suspected attempt to allow substandard fuel into the country.
Those arrested include Principal Secretary for Petroleum Mohamed Liban, Energy and Petroleum Regulatory Authority Director-General Daniel Kiptoo, Kenya Pipeline Company Managing Director Joe Sang, and a senior petroleum official identified as Simon Wafula.
Sources said detectives from the Directorate of Criminal Investigations (DCI) carried out coordinated operations, searching the officials’ homes and recovering documents and cash believed to be linked to the case. More suspects are reportedly being sought for questioning.
The arrests are linked to a controversial consignment of fuel imported under Kenya’s government-to-government (G-to-G) deal, amid fears that the country could face supply disruptions due to the ongoing conflict in the Middle East.
Investigations indicate that the fuel in question failed to meet Kenya’s quality standards, with tests revealing high sulphur content.
A quality assurance manager at the Kenya Pipeline Company is said to have rejected the shipment after conducting laboratory tests.
The official reportedly came under pressure to approve the offloading of the fuel but declined and escalated the matter, triggering the subsequent crackdown.
Authorities are now probing claims that some officials involved in the G-to-G arrangement attempted to push through the offloading of the substandard fuel despite the risks.
The G-to-G fuel deal, launched in 2023 with Gulf firms including Saudi Aramco, ADNOC and ENOC, was designed to secure fuel supplies, stabilise the shilling and reduce pressure on foreign exchange reserves. The agreement has since been extended to 2027/2028.
The developments come at a time when Kenya, like many other countries, is grappling with rising global oil prices driven by geopolitical tensions.
John Mbadi, the Cabinet Secretary for the National Treasury, said the current fuel pricing cycle is unlikely to be affected, as the products in circulation were delivered before the escalation of the Middle East conflict.
However, he warned that prices could rise by mid-April, with the government preparing mitigation measures to cushion consumers.
Mbadi said about Sh17 billion in the fuel stabilisation fund will be deployed to moderate price increases, while the government is also considering adjustments to the application of VAT on fuel to ease the burden on consumers.
Meanwhile, President William Ruto has acknowledged the growing pressure on global supply chains, noting that the conflict in the Middle East is already affecting economies worldwide.
Despite the unfolding developments, authorities maintain that fuel supply remains stable, with current stock levels standing at 16 days for petrol, 19 days for diesel and 49 days for jet fuel and kerosene.
The investigation into the suspected dirty fuel scandal is ongoing.
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