Kenya’s energy sector faces a major shake-up. Several senior officials were arrested on Thursday night. The arrests followed a widening investigation into fuel imports and supply disruptions. The Directorate of Criminal Investigations (DCI) led the operation. Authorities said the move targets irregularities in fuel approvals and supply management.
Officials arrested include Energy Principal Secretary Mohamed Liban, KPC Managing Director Joe Sang, EPRA Director-General Daniel Kiptoo, and Petroleum Director Joseph Wafula. They were first taken to local police stations. Later, they were transferred to DCI headquarters on Kiambu Road. Authorities indicated more arrests could follow as the probe continues.
Allegations of Fuel Mismanagement
Investigators recovered documents and unspecified sums of money from the homes of the suspects. The arrests follow concerns over mishandled fuel consignments. Officials allegedly caused artificial shortages and market instability. A central issue is a fuel shipment imported under the government-to-government (G-to-G) deal. Tests showed elevated sulphur levels, exceeding Kenyan standards. A KPC quality assurance manager stopped the fuel from entering the market. Senior officials then debated whether to release it. These disagreements revealed gaps in accountability.
The arrests also involve fuel imported outside the G-to-G framework by One Petroleum and Oryx. Each company shipped 60 tonnes last month. One shipment reportedly attracted a premium of $290 per tonne. The standard G-to-G rate is $84 per tonne. This raises questions about profiteering and manipulation in the supply chain. KPC manages Kenya’s fuel storage and transport network. EPRA and the Ministry of Energy handle fuel import approvals. The arrested officials played key roles in these processes. Surprisingly, Energy CS Opiyo Wandayi, who oversees the agencies, was not implicated. This raises questions about oversight and accountability.
Government Response and Economic Context
Kenya relies heavily on fuel imports from Gulf suppliers. These include Saudi Aramco, ENOC, and ADNOC. The G-to-G deal, extended to 2027/28, stabilizes supply and eases foreign exchange pressures. Gulf suppliers nominate local firms for imports. Gulf Energy handles over 80% of petrol imports and part of diesel supply. Before the arrests, CS Wandayi warned marketers against hoarding fuel. He called the practice “commercially opportunistic” and illegal under licensing rules. He urged companies to maintain supply and follow gazetted prices. The government emphasized consumer protection and market stability.
The probe comes amid global oil price pressures. Middle East tensions could raise costs further. President William Ruto said the government is monitoring the situation. Authorities plan to deploy Sh17 billion from the petroleum stabilization fund over the next three months. Tax adjustments may also help cushion consumers. Meanwhile, One Petroleum billed marketers for higher import premiums. Experts warn this could raise petrol prices by Sh19 per litre from April 15. EPRA will announce new fuel prices for April 15–May 14. Consumers brace for possible increases despite subsidies. Investigators aim to determine if handling of fuel stocks caused shortages, quality failures, or irregular imports. The arrests mark a strong step against corruption in Kenya’s petroleum sector. They show the government’s commitment to accountability.
Fuel supply remains stable for now. However, market watchers and consumers await further updates. The case highlights Kenya’s complex energy sector. Regulatory oversight, international supply chains, and governance all intersect. Missteps in these areas can have wide economic consequences.
