Govt moves to block irregular fuel import over pricing concerns

The Kenyan government moved decisively to stop the circulation of a consignment of super petrol imported outside its established Government-to-Government (G-to-G) fuel supply framework, warning that the move could have significantly driven up pump prices.

Energy Cabinet Secretary Opiyo Wandayi said the consignment—amounting to 60,000 metric tonnes—was brought into the country in violation of procedures set under the G-to-G arrangement established in March 2023.

The framework agreements, signed with international suppliers including Aramco Trading, ADNOC Global Trading Limited, Emirates National Oil Company (Singapore) Private Limited and Fujairah FZE, were designed to stabilize fuel supply, maintain price predictability, and ease pressure on foreign exchange.

According to the government, the unauthorized shipment was priced at Sh198,000 per metric tonne—far above the Sh140,000 per metric tonne benchmark under the G-to-G system.

Officials warned that allowing the fuel into the market would have led to an estimated increase of about Sh14 per litre at the pump.

“The action posed a risk to the integrity of a system that has consistently safeguarded supply security and pricing stability,” Wandayi said.

In response, the Ministry of Energy and Petroleum has issued a series of directives targeting the importer, One Petroleum Limited, and other stakeholders in the supply chain.

The company must immediately withdraw all invoices issued to oil marketing firms and issue credit notes.

Oil Marketing Companies were instructed not to pay for or lift any fuel from the consignment while One Petroleum Limited was ordered to re-export the product out of Kenya as soon as possible.

The Energy and Petroleum Regulatory Authority (EPRA) was directed to exclude the consignment from monthly fuel price computations.

The government emphasized that the G-to-G framework, in place since April 2023, has ensured consistent fuel supply locally and across the region while cushioning the Kenyan shilling against volatility in global oil markets.

Authorities also warned against any attempts by industry players to create artificial shortages or exploit the situation through unjustified price hikes.

“The Government will remain vigilant to ensure accountability and protect consumers,” Wandayi said, reaffirming its commitment to transparency and stability in the petroleum supply chain.

Fuel prices, the ministry added, will continue to be reviewed and communicated through the standard monthly process.

The developments come as the police continued with their probe into the oil importation saga.

Detectives are focusing on members of a committee that raised an alarm of a potential fuel shortage in the country that prompted the importation of the product in a huff hence causing panic.

Officials said the members of the Vessel Alignment Committees (VAC) are the ones on focus in the probe for now.

The officials handling the saga said the technical committee members have to take responsibility for the issue for now.

“Blaming Cabinet Secretaries in the line ministries is political. We understand the committee members had a key role and it is the reason we are focused on them for now to tame future impropriety,” said an official aware of the probe.

A team of detectives is investigating the saga and has so far recorded statements from about 20 persons of interest.

The team was seeking statements from more people in the committee before they forward the file to the Office of Director of Public Prosecutions for action.

The officials in VAC are said to have raised an alarm of a possible fuel shortage in the wake of Iran war which prompted others in the chain to sanction the importation of the fuel now under probe.

VAC are specialized bodies or meetings established to ensure consistency in maritime operations, data reporting, and technical standards between stakeholders, such as ocean carriers and marine terminal operators.

Their work is to improve supply chain visibility and efficiency by standardizing data points, processes, and practices between Ocean Carriers and Marine Terminal Operators (MTOs).

Investigations show officials at the ministry of energy had on March 18, 2026 sent memos indicating there would be fuel shortage over the Iran war.

This was escalated to other officials got a vessel with fuel at USD110 and outside the Government to Government framework.

This was deemed too expensive.