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.
A statement by the ministry disclosed significant pricing discrepancies between two fuel shipments delivered in March 2026. According to official invoices, petrol supplied by One Petroleum aboard MT Paloma was priced at Sh198,855 per metric ton upon landing in Mombasa. In contrast, fuel supplied under the G-to-G arrangement by Gulf Energy via MT FOS Mercury cost Sh140,111 per metric ton. This represents a difference of Sh58,744 per metric ton—equivalent to approximately Sh43.4 per litre—making the G-to-G cargo substantially cheaper.
Head of Public Service Felix Koskei, the government said the controversy stems from the manipulation of national fuel stock data, which created a false impression of an impending shortage. According to the government, the alleged falsification of fuel stock data led to the procurement of an emergency fuel shipment at inflated prices and outside the established Government-to-Government (G2G) fuel supply framework. The cargo is also reported to have been of substandard quality.
Top energy officials who had been arrested by police over claims of impropriety in importation of fuel were Sunday released on police cash bail pending a probe into the saga.
They each paid Sh100,000 for their release and told they would be called anytime for possible plea taking. This will be after the investigation team take statements from the about 31 members of the VAC
The top officials who had been arrested over importation of substandard fuel resigned from their positions after their arrest on Thursday April 2, 2026.
The officials who resigned include Principal Secretary for Petroleum Mohamed Liban, Managing Director of Kenya Pipeline Company Joe Sang, and Director General of the Energy and Petroleum Regulatory Authority Daniel Kiptoo Bargoria.
Joseph Wafula (deputy director of Petroleum) also resigned.
Administrative actions have been initiated against Joel Mburu (supply and logistics manager).
They were released on police bond after it emerged there are about 26 people who are yet to be traced for statement taking in the probe.
Authorities say the G2G arrangement, introduced in 2023, has ensured stable fuel supply and shielded Kenya from global market shocks, including disruptions linked to geopolitical tensions in the Middle East. Key international suppliers under the framework have continued to meet their contractual obligations without interruption.
However, the government now believes certain officials exploited public anxiety over global fuel prices by misrepresenting stock levels, triggering unnecessary emergency procurement in violation of established procedures.
The matter has been escalated to investigative agencies, with authorities warning that such actions may constitute offences under the Anti-Corruption and Economic Crimes Act and the Penal Code.
The government has vowed full accountability, stating that any individuals found culpable of economic sabotage will face firm legal consequences.
Investigations are ongoing, with further updates expected as authorities seek to reverse irregular transactions and restore compliance with the G2G framework.
President William Ruto warned cartels in the petroleum industry out to profit from the crisis in the Middle East will be severely punished. He said the government will not allow a few profiteers to take advantage of the crisis in the Gulf Middle East to exploit Kenyans through corruption in the petroleum industry. Ruto said his administration will weed out all the profiteers and cartels in the petroleum sector. ”We will deal firmly, decisively and conclusively with all the cartels in the oil sector,” he said. All those who have been given public responsibility in the petroleum sector, he pointed out, must be accountable. Ruto spoke as Ruto pointed out that these cartels will be dealt in the same way as the profiteers in the tea, coffee and sugar sectors, saying his administration has eliminated the groups that had frustrated farmers for decades. ”We are committed to the fight against impunity. We have stopped cartels in the sugar, coffee and tea sectors, and will similarly stop those in the petroleum sector,” he said. Additionally, he explained that cartels that were involved in the distribution of sub-standard and counterfeit fertiliser had also been punished. Energy Cabinet Secretary Opiyo Wandayi said the situation remains firmly under control, emphasizing that swift action had been taken once irregularities in a fuel shipment came to light. He revealed that authorities halted the delivery of a second cargo under similar conditions, a move aimed at safeguarding public interest. Wandayi further reassured Kenyans that the country currently holds sufficient petroleum stocks to meet demand, dismissing fears of imminent shortages. He reiterated the government’s commitment to ensuring a steady supply of high-quality fuel for both domestic consumption and regional markets. The Cabinet Secretary also defended the government-to-government (G-to-G) fuel procurement framework, noting that it continues to shield the country from volatility linked to geopolitical tensions, particularly in the Middle East. He described the arrangement as “stable and resilient.” To address emerging concerns, the Ministry has launched a comprehensive internal review of petroleum product management systems. The review is intended to strengthen transparency, protect product quality, and reinforce the integrity of the supply chain. Wandayi warned that authorities would not tolerate cartels, profiteers, or individuals seeking to exploit the situation for personal gain.
Email your news TIPS to Editor@Kahawatungu.com — this is our only official communication channel
