The government has initiated urgent recovery proceedings against importers involved in the controversial fuel importation scandal after the Ministry of Energy announced that over Ksh3 billion had been lost in the scheme.
Speaking to the media on Monday, April 6, United Democratic Alliance (UDA) Secretary General Hassan Omar stated that the recovery process is aimed at shielding taxpayers from any projected financial loss.
"We confirm that urgent recovery proceedings against the importers have commenced to ensure Kenyan taxpayers are shielded from any financial exposure," Omar stated.
The scheme involved the importation of high-priced fuel cargo, sold between Ksh 50 and Ksh 80 a litre, way above the government-to-government (G2G) pricing framework.
To deter future violations, Omar said the government is proposing punitive sanctions amounting to five times the projected loss. This means the Ksh 3 billion lost in the scheme will now be multiplied to Ksh 15 billion.
Funds recovered from the importers are earmarked for investment in Level Six hospitals, transforming a potential economic setback into a long-term public health benefit.
"We further propose punitive sanctions amounting to 5 times the projected loss. This recovered cash should be channelled towards strengthening Level Six hospitals, thereby converting a potential loss into a long-term public health investment," he added.
The statement from the ruling party comes against the backdrop of an ongoing controversy surrounding the energy sector after a procurement deal involving substandard fuel between senior state officials at the Ministry of Energy and Petroleum.
The officers who have since resigned from their positions and are in police custody include former Petroleum PS Mohammed Liban, former Kenya Pipeline Corporation MD Joe Sang, and Energy and Petroleum Regulatory Authority (EPRA) Director General Daniel Kiptoo.
The three, alongside another official from the ministry, are accused of securing an importation deal of substandard fuel into the country, bypassing the G2G deal the government has with Saudi Arabian companies. The deal was worth over Ksh 4 billion, but the ministry says about Ksh 3 billion was lost.
This has raised fears among the public over a possible fuel price hike, with many projecting that ordinary Kenyans could bear the cost of the deal.
In response, Omar assured Kenyans that they would not face higher pump prices due to the scandal. EPRA will maintain the G2G pricing framework in the forthcoming review to ensure stable and reasonable fuel prices while safeguarding supply quality and national energy security.
"We offer our firm assurance to Kenyans that they will not be penalised at the pump for this ill-conceived fuel importation misadventure," he said.
He also confirmed that mandatory quality tests are being conducted on the imported cargo, and results will be publicly disclosed, emphasising that no testing protocols will be waived.
"There will be no waiver of such testing protocols, as any such actions will amount to gross negligence and unacceptable dereliction of duty."
The statement comes after President William Ruto’s assurance that no cartel will be spared if found culpable in the scandal.
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