Petroleum PS, KPC MD, EPRA Boss Resign After Arrests Over Alleged Substandard Fuel Plan
Principal Secretary in the State Department for Petroleum Mohamed Liban, Kenya Pipeline Company Managing Director Joe Sang, and Energy and Petroleum Regulatory Authority Director General Daniel Kiptoo have resigned following their arrest and questioning over an alleged plan to import substandard fuel into the country.
Chief of Staff Felix Koskei, in a statement on Saturday, confirmed that President William Ruto had received Liban’s resignation. He added that the KPC board had accepted Sang’s resignation, while EPRA had also received Kiptoo’s resignation.
Koskei said administrative action had been initiated against Deputy Director of Petroleum Joseph Wafula, while KPC had commenced disciplinary proceedings against Supply and Logistics Manager Joe Mburu, both linked to the matter.
“The relevant investigative agencies will continue with inquiries to ensure full accountability,” Koskei said.
KPC Appoints Acting Managing Director
The KPC Board of Directors appointed Pius Mwendwa as Acting Managing Director.
Board chairperson Faith Boinett said the board was closely monitoring developments and working with relevant institutions to understand the scope of the allegations.
“We wish to assure our stakeholders, shareholders and the public that KPC operations remain stable and unaffected,” she said.
Sang and at least 15 other officials involved in the Government-to-Government (G-to-G) oil deal were arrested and questioned by the Directorate of Criminal Investigations.
Those detained included senior government officials and fuel dealers. They spent several hours at DCI headquarters and are expected to face possible charges after investigations. Authorities also conducted searches at their residences, recovering documents and cash.
Investigations revealed that a shipment of fuel linked to the deal did not meet Kenya’s required standards due to high sulphur content. A quality assurance manager at KPC reportedly rejected the consignment after tests, despite alleged pressure to approve its offloading.
The matter was escalated, triggering a crackdown that led to the arrests.
Fuel Supply and Price Concerns
The developments come amid concerns over global fuel supply disruptions linked to tensions in the Middle East, including the ongoing conflict involving Iran. Countries have increasingly turned to alternative fuel sources, including offshore suppliers.
Kenya’s G-to-G fuel deal, launched in 2023 with firms such as Saudi Aramco, ADNOC and ENOC, was designed to stabilise supply, ease pressure on the shilling and reduce demand for dollars. The programme, extended to 2027/2028, has helped cushion the country from global price shocks.
According to the government, current fuel reserves stand at 16 days for petrol, 19 days for diesel, and 49 days for jet fuel and kerosene.
National Treasury Cabinet Secretary John Mbadi said the current pricing cycle, running from March 15 to April 14, is unlikely to be affected, as the products in use were delivered before the escalation of the Middle East conflict.
However, he warned that fuel prices could rise in the coming weeks as global oil prices increase, adding that the government may intervene to cushion consumers, though only temporarily.