Government orders removal of scandal-hit fuel shipment

Energy CS Opiyo Wandayi during the official opening of the 2025 Energy Summit in Nairobi. [Benard Orwongo,Standard] The government has ordered One Petroleum Limited to remove a controversial fuel shipment from the country immediately. In a statement, Energy Cabinet Secretary Opiyo Wandayi has also directed the company to withdraw all invoices issued and replace them with credit notes sent to oil marketing companies. "Oil Marketing Companies should neither pay the invoices nor uplift product from this consignment," he said. "Energy and Petroleum Regulatory Authority (EPRA) is directed to subsequently exclude this product from the monthly computation of petroleum product costs." According to the CS, the 60,000-metric-tonne consignment of super petrol was imported in contravention of the government-to-government (G-to-G) fuel supply agreement between Kenya and its suppliers. "This action posed a risk to the integrity of a system that has consistently safeguarded supply security and pricing stability," he said. The shipment was priced at Sh198,000 per metric tonne, compared with Sh140,000 for fuel imported under the G-to-G framework, the CS said. He noted that the Sh58,000 difference per metric tonne would have increased fuel prices by about Sh14 per litre for this consignment alone, in the upcoming fuel review. "The government will remain vigilant to ensure that no individual, company, or stakeholder engages in artificial shortages or unjustified price increases. The public will continue to be updated on fuel prices in the usual manner." Wandayi further assured partners that the Kenya Kwanza administration remains committed to upholding the integrity of the G-to-G framework and will honor its obligations. The shipment has triggered the arrest of senior energy officials, who spent part of the Easter weekend in police custody. Those arrested include Petroleum Principal Secretary Mohamed Liban, former EPRA Director-g=General Daniel Kiptoo and former Kenya Pipeline Company Managing Director Joe Sang. Also detained were Joseph Wafula, deputy director of petroleum at the Energy Ministry, and Joel Mburu, a supply and logistics manager at the Kenya Pipeline Company.All five officials resigned following their arrests. Kenya entered into the G-to-G agreement in 2023 with Aramco Trading, Fujairah FZE, ADNOC Global Trading Limited and Emirates National Oil Company (Singapore) Private Limited. The firms import fuel on behalf of the government for domestic supply. The CS held that the arrangement has helped stabilise prices despite global volatility and shielded consumers from substandard fuel.

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