Fresh details have emerged explaining why detectives from the Directorate of Criminal Investigations (DCI) arrested four senior figures in Kenya’s energy sector, in a probe linked to fuel supply disruptions and quality concerns.
Those arrested include Energy Principal Secretary Mohammed Liban, Energy and Petroleum Regulatory Authority Director General Daniel Kiptoo, Kenya Pipeline Company PLC Managing Director Joe Sang, and Energy Chief Economist Joseph Wafula. The four were reportedly arrested from their homes.
Investigators say the arrests stem from suspected interference in the petroleum supply chain, an offence under Kenya’s economic crimes framework.
The officials are accused of failing to maintain proper records, stocks, and reserves of petroleum products — actions that may have destabilized the market.
At the center of the investigation is a fuel consignment imported under a government-to-government (G2G) deal that was flagged for having sulphur levels above Kenya’s standards.
A quality assurance manager at Kenya Pipeline Company PLC halted its distribution and escalated the matter, triggering a chain of events now under scrutiny.
Authorities believe that withholding the consignment disrupted fuel supply and contributed to an artificial shortage. The shortage had initially been blamed on global factors, including tensions in the Middle East, but investigators now suspect internal interference played a key role.
The developments come after Energy Cabinet Secretary Opiyo Wandayi ordered oil marketers to release hoarded fuel, warning that withholding stocks is illegal and breaches licensing obligations.
Despite the disruption, Kenya’s fuel reserves remain relatively stable, with about 16 days of petrol, 19 days of diesel, and 49 days of jet fuel and kerosene in stock.
To cushion consumers, the government is planning to release KSh17 billion from the petroleum stabilisation fund over the next three months to help moderate pump prices.
“The Board is monitoring the situation and is in communication with the relevant institutions to understand the nature and scope of the allegations,” a related statement noted, underscoring the seriousness of the probe.
Authorities have also warned that while current shipments remain stable, rising geopolitical tensions could still pose risks to future fuel prices.
The DCI is expected to continue investigations as the government moves to restore confidence in the country’s energy supply chain.
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