The arrest of Energy and Petroleum Regulatory Authority (EPRA) Director General, Daniel Kiptoo, Energy and Petroleum Regulatory Authority (EPRA) Director General, Daniel Kiptoo and Petroleum Principal Secretary (PS) Mohamed Liban, and Kenya Pipeline Company (KPC) Managing Director Joe Sang, has been linked to shipments imported to Kenya, and entered the Kenyan Market.
According to Business Daily on April 3, the two petrol shipments, which were imported outside the government-to-government (G-to-G) framework, contained substandard fuel.
Further, it notes that last month the shipments were supplied by One Petroleum and Oryx, each delivering about 60 tonnes of petrol.
One of the shipments was sold at USD 290 (approximately KSh37,690) per tonne, more than three times the USD 84 (approximately KSh10,917.48) per tonne under the G-to-G deal.
Currently, investigations are probing into how the shipments were cleared.
How the Fuel Was Flagged
The vessels were reportedly allowed into the market after a separate consignment of 114.7 million liters of super petrol sourced from Emirates National Oil Company (Enoc) failed to leave the Port of Jebel Ali in Dubai due to the closure of the Strait of Hormuz, disrupting planned supply.
A KPC quality assurance manager reportedly flagged the issue after testing the fuel, stopped its distribution, and alerted senior authorities.
The matter sparked internal debates over whether the petrol should be released to the market before investigators were involved.
Business Daily adds that authorities are exploring possible charges under economic crimes legislation, citing alleged lapses in record-keeping and management of petroleum stocks and reserves.
Investigators suspect that the way certain fuel consignments were handled and released may have worsened supply disruptions.
Also Read: EPRA Boss Kiptoo, Petroleum PS Liban Arrested
DCI Confirms Arrests of Energy PS, EPRA Boss, and KPC Director
The Directorate of Criminal Investigations (DCI) Director, Mohamed Amid, confirmed on Thursday evening, April 2, that the three officials had been arrested as part of an ongoing probe.
He added that officers are still seeking other individuals suspected of involvement in the scheme.
The trio spent the night in custody and are currently held at Gigiri Police Station, with the identity of the fourth individual arrested in connection with the saga is yet to be known.
Also Read: EPRA Reveals Petrol Stations and Sites Selling Contaminated Fuel
This comes a day after Treasury Cabinet Secretary John Mbadi assured the country that fuel prices will remain unchanged for at least two months, despite the impact of the war in Iran on global oil prices.
Mbadi said that, as of March 30, the country held 138,623 metric tons of super petrol, 207,841 metric tons of diesel, and 150,398 metric tons of jet fuel.
Expected deliveries for March and April include 290,000 metric tons of super (47 days’ cover), 182,900 metric tons of diesel (20 days’ cover), and 60,000 metric tons of jet fuel (25 days’ cover).
Import plans for May to July include 510,000 metric tons of super, 765,000 metric tons of diesel, and 200,000 metric tons of jet fuel.
