Detectives from the Directorate of Criminal Investigations (DCI) have arrested three senior government officials and an economist in connection with the importation of substandard oil.
The four include: Petroleum Principal Secretary Mohamed Liban, Energy and Petroleum Regulatory Authority (EPRA) Director General Daniel Kiptoo, Kenya Pipeline Company Managing Director (KPC) Joe Sang, and official Joseph Wafula.
The four suspects were arrested on Thursday, April 2, night and taken to the DCI Headquarters for grilling before being detained at the Gigiri Police Station.
Reports indicate that four are linked to an ongoing investigation into a disputed fuel consignment and alleged irregular imports outside the Government-to-Government (G-G) framework, with DCI detectives examining procurement processes, stock management, and possible interference in the supply chain.
The suspects reportedly cleared two fuel vessels outside the G-to-G framework after a 114.7M-litre ENOC shipment stalled at Jebel Ali following the Strait of Hormuz closure, which created a supply gap.
The two vessels were cleared to bridge the gap, carrying cargo priced at approximately $290 per tonne, compared to about $84 per tonne under the G-to-G deal—a price disparity that was placed under scrutiny.
Additionally, the consignments were flagged for having sulphur levels exceeding Kenya’s regulatory standards. Quality assurance tests by the Kenya Pipeline Company (KPC) prompted a halt in distribution, with the matter escalated internally for further review.
Meanwhile, KPC has appointed Pius Mwendwa as acting Managing Director following the arrest of its Joe Sang.
Mwendwa had been serving as the General Manager-Finance at Kenya Pipeline and will handle the MD role pending the progress and outcome of the DCI inquiry.
“To ensure business continuity in the intervening period, Pius Mwendwa (GM-Finance) will discharge the duties of the office of the Managing Director,” KPC Board Chair Faith Bett stated.
