“Artificial shortage” fuel supply scandal rocks Kenya government

Kenya’s petroleum sector has been rocked by a major controversy that has led to the resignation of three senior officials - Petroleum Principal Secretary Mohamed Liban, Kenya Pipeline Company Managing Director Joe Sang, and Energy and Petroleum Regulatory Authority (EPRA) Director General Daniel Kiptoo Bargoria.

According to a statement from Kenya’s State House, President William Ruto accepted the resignation of Mohamed Liban. The board of the Kenya Pipeline Company also accepted the resignation of Joe Sang, while the board of the Energy and Petroleum Regulatory Authority accepted the resignation of Daniel Kiptoo Bargoria. These resignations follow allegations of serious misconduct in the management of fuel supplies.

At the center of the crisis are claims that domestic fuel stock data was deliberately altered to create the false impression of an impending shortage. Investigators believe this manipulation misled both policymakers and the public, generating unnecessary urgency within the system. Authorities argue that the narrative of artificial scarcity was then used to justify emergency fuel imports that would otherwise not have been required.

Concerns have been raised that the emergency procurement process violated established procedures and resulted in significant financial irregularities. The imported fuel was reportedly purchased at prices far exceeding those outlined in existing agreements, with additional questions surrounding its quality. Companies including One Petroleum Limited and Oryx Energies have been linked to the shipments under investigation, and their executives are now part of ongoing inquiries.

The government expressed “grave concern” over the alleged misconduct, stating that key officials responsible for managing the petroleum supply chain may have falsified data to exploit rising global fuel prices and heightened public anxiety. According to the presidency, this misrepresentation led to the irregular procurement of an emergency fuel cargo by the Ministry of Energy and Petroleum. The shipment was reportedly acquired outside the government-to-government (G2G) framework, at inflated prices, in breach of procurement regulations, and was described as “substandard.”

The government warned that falsification of information in the petroleum sector constitutes a “serious breach of public trust and may amount to economic crimes” under Kenyan law, including provisions in the Anti-Corruption and Economic Crimes Act and the Penal Code. The matter has since been referred to investigative agencies for a full inquiry. The government says investigations will continue, with all relevant institutions directed to cooperate fully.

“The Government remains steadfast in safeguarding the public good and protecting national interests,” Ruto said, warning that acts of economic sabotage will be met with firm action.

Meanwhile, the Directorate of Criminal Investigations (DCI) has intensified its probe into the suspected irregular importation of fuel, widening its scope to include senior government officials and private sector players linked to the controversial cargo.

In a statement issued Saturday, the agency confirmed it is investigating the importation of Premium Motor Spirit (PMS) by One Petroleum Limited. Statements have already been recorded from multiple witnesses and persons of interest, including senior state officials and company executives. The DCI added that executives from Oryx Energies have also been summoned.

According to investigators, the probe is being conducted in collaboration with” various government agencies and international partners under the Mutual Legal Assistance (MLA) framework,” aimed at establishing the full extent of the alleged irregular procurement.

The DCI said it is working to conclude investigations promptly and will submit its findings to the Office of the Director of Public Prosecutions (ODPP) for further action. It warned that those found culpable will face prosecution, regardless of their position. The agency stressed that recent resignations do not shield suspects from criminal liability. “Resignation from office does not in any way exonerate or absolve suspects and persons of interest from criminal culpability,” it said, urging full cooperation.

The scandal comes at a time of heightened global energy volatility. Since the conflict in Middle East escalated - particularly after Iran moved to close the Strait of Hormuz, a critical maritime chokepoint through which a large share of the world’s oil supply passes - global energy flows have been substantially disrupted. This development has disrupted international energy markets, driving up fuel prices and, in some regions, leading to supply disruptions.

The impact has been especially severe in the Horn of Africa, where many economies rely heavily on imported fuel transported by sea. These disruptions have affected not only fuel availability but also access to essential goods, including fertilizers and other key commodities. As a result, the region is experiencing mounting economic pressure. Rising transportation costs, increased agricultural production expenses, and higher prices for everyday goods are placing an additional burden on already vulnerable economies.