A major corruption scandal has shaken Kenya’s energy sector, prompting the resignation of top government officials and igniting political pressure at the highest levels of leadership.
President William Ruto confirmed the resignation of Petroleum Principal Secretary Mohamed Liban, Energy and Petroleum Regulatory Authority (EPRA) Director General Daniel Kiptoo Bargoria, and Kenya Pipeline Company (KPC) Managing Director Joe Sang following their arrest over alleged manipulation of fuel stock data.
In a statement signed by Head of Public Service Felix Koskei, the government revealed that the officials falsified data to create a false impression of a fuel shortage. “The shipment in question was procured in blatant breach of the G2G framework… and was of substandard quality,” the statement read.
The alleged scheme led to the procurement of an emergency fuel shipment valued at approximately Ksh4 billion, acquired outside Kenya’s Government-to-Government (G2G) oil import framework with Gulf suppliers. Authorities say the deal violated procurement rules, involved inflated pricing, and introduced substandard fuel into the market.
Investigations by the Directorate of Criminal Investigations (DCI) have since widened, with additional officials -including Deputy Director Joseph Wafula and KPC Supply and Logistics Manager Joel Mburu facing internal disciplinary action. Koskei confirmed, “The State Department for Petroleum has initiated appropriate administrative action… while KPC management has commenced due process.”
Central to the probe is a 60,000-metric-tonne fuel consignment transported by the vessel MV Paloma, which was allegedly diverted from Angola to the Port of Mombasa under unclear circumstances. Preliminary findings indicate the cargo, reportedly sourced from Saudi Aramco, may have been overpriced by more than Ksh4 billion. Investigators warn potential losses could rise to nearly Ksh8 billion if a second shipment is confirmed.
Authorities believe the manipulation of fuel data was designed to exploit public anxiety and rising global oil prices. President Ruto noted the actions “created a false impression of an impending supply shortfall,” enabling the irregular purchase.
The scandal has triggered sharp political reactions. Kakamega Senator Boni Khalwale has called for the resignation or arrest of Energy Cabinet Secretary Opiyo Wandayi, arguing that he must take responsibility. “If he knew, he must be arrested… if he didn’t, he must resign,” Khalwale stated.
Meanwhile, Kiharu MP Ndindi Nyoro suggested the scandal may expose deeper entrenched interests within the fuel supply chain, claiming the issue goes beyond public welfare to powerful business networks.
At KPC, Pius Mwendwa has been appointed acting Managing Director, with assurances that operations remain stable.
The government has pledged full accountability, warning that those found culpable will face charges under Kenya’s economic crimes laws.
As investigations deepen, the scandal is shaping into one of the most significant tests of transparency and governance in Kenya’s energy sector.
