There was drama on Thursday night after four senior officials in Kenya’s petroleum sector were arrested over allegations linked to a suspected dirty fuel scandal.
According to insiders, the incident involves fuel imported under the Government-to-Government (G-to-G) oil arrangement, with concerns that contaminated fuel could have entered the local market and triggered supply disruptions.
Those arrested include the Principal Secretary for Petroleum, Mohamed Liban, the 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.
Investigators are also pursuing additional officials for questioning as part of ongoing probes, according to sources familiar with the matter.
Reports indicate that security officers searched the suspects’ homes and allegedly recovered documents and undisclosed sums of money during the operation.
The arrests come amid growing concerns over fuel supply stability, worsened by global tensions and disruptions affecting oil shipping routes. Authorities have warned that such developments could expose countries to supply shortages and price instability.
Officials claim that some of the fuel imported under the G-to-G arrangement did not meet Kenya’s required quality standards, with reports indicating elevated sulphur levels that led to rejection of the product.
A quality assurance manager at Kenya Pipeline Company is said to have flagged and rejected the fuel after conducting tests, despite alleged pressure to allow offloading. The matter was later escalated, triggering investigations.
Authorities say the rejected fuel raised serious safety and environmental concerns, prompting swift action from enforcement agencies.
At the same time, Kenya continues to monitor its fuel reserves closely. Current stock levels are estimated at about 16 days for petrol, 19 days for diesel, and 49 days for jet fuel and kerosene, offering short-term stability as new shipments are expected.
National Treasury Cabinet Secretary John Mbadi stated that suppliers under the G-to-G arrangement are sourcing fuel from alternative regions such as Europe and India to avoid disruption.
He further noted that the government has set aside approximately Sh17 billion from the Petroleum Development Levy stabilization fund to help cushion consumers against possible price increases.
Mbadi also revealed that the government is exploring adjustments to fuel taxation and stabilization mechanisms to prevent sharp rises in pump prices.
President William Ruto has previously warned that global geopolitical tensions, particularly in the Middle East, are placing pressure on global supply chains and could impact fuel prices locally.
He said the government is closely monitoring developments and working with key ministries, including Energy, Agriculture, Trade, and the Central Bank, to manage any economic shocks.
Despite the uncertainty, officials maintain that Kenya’s Government-to-Government fuel procurement arrangement remains a key buffer that has helped stabilize supply and shield consumers from global price shocks.
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