NAIROBI, Kenya Apr 3 – Senior government and energy sector officials, including Energy Principal Secretary Mohamed Liban and Energy and Petroleum Regulatory Authority (Energy and Petroleum Regulatory Authority) Director General Daniel Kiptoo, have been arrested and questioned over allegations of an artificial fuel shortage linked to suspected fuel quality irregularities.
Also detained in the operation are Kenya Pipeline Company (Kenya Pipeline Company) Managing Director Joe Sang and a senior petroleum department official identified as Simon Wafula, as detectives widen investigations into the alleged fuel supply disruption.
According to sources, more officials are being sought by the Directorate of Criminal Investigations (DCI) for grilling as part of a broader probe into suspected interference within the petroleum supply chain.
The officials were reportedly picked up in a coordinated operation on Thursday night, with their homes searched and unspecified amounts of money and documents recovered, according to investigators.
Authorities are probing claims that a fuel consignment under government-to-government (G-to-G) arrangements may have been flagged over quality concerns, raising fears of potential supply disruption.
Sources familiar with the investigation said the fuel in question was suspected to have elevated sulphur levels and was deemed non-compliant with Kenyan specifications, prompting concerns it could not be safely offloaded into the domestic market.
A Kenya Pipeline Company quality assurance manager is said to have raised concerns after conducting tests on the fuel and declined to authorize its discharge, escalating the matter to higher authorities.
The decision reportedly triggered internal pressure and disagreements over whether the product should be released into the system, before the matter was escalated to investigators.
The controversy comes amid heightened sensitivity over fuel supply stability, with Kenya relying on structured import arrangements with Gulf suppliers including Saudi Aramco, ADNOC, and ENOC under a 180-day credit facility aimed at stabilizing supply and easing pressure on foreign exchange demand.
The arrangement, which has since been extended to 2027/2028, has been credited with cushioning the country against global oil price shocks, though it has also faced scrutiny over procurement and pricing structures.
Current petroleum stock levels stand at approximately 16 days for petrol, 19 days for diesel, and 49 days for jet fuel and kerosene, providing short-term stability as new shipments are expected in April.
National Treasury and Economic Planning Cabinet Secretary John Mbadi said the current pricing cycle is unlikely to be immediately affected, noting that shipments received before the escalation of Middle East tensions remain insulated from recent global price spikes.
However, he cautioned that rising geopolitical tensions could begin to exert pressure on fuel prices in the coming cycles, even as the government moves to cushion consumers.
He added that the government will deploy about Sh17 billion from the petroleum stabilization fund to moderate pump prices over the next three months, alongside possible tax adjustments aimed at softening the impact on consumers.
President William Ruto has also acknowledged growing global economic pressure linked to conflict in the Middle East, saying the government is closely monitoring developments and working with key agencies to manage potential spillover effects.
Despite the developments, authorities maintain that fuel supply remains stable for now as investigations continue into the alleged artificial shortage and quality concerns within the supply chain.
