Kenya has blocked a second fuel shipment at Mombasa amid investigations into a controversial government oil import deal. Scrutiny intensified following irregularities with an initial shipment, leading to a probe into possible system manipulation.
Key officials, including the heads of regulatory and supply agencies, have resigned over attempts to undermine the fuel import framework.
President William Ruto vowed a crackdown on entrenched oil cartels and external pressures affecting the sector.
The move follows concerns surrounding an earlier fuel shipment that had already entered Kenya’s supply chain but was later flagged over irregularities linked to its procurement and handling under the government-to-government oil import framework.
The initial cargo, now at the center of investigations, raised red flags within regulatory and government circles, prompting a broader probe into potential manipulation of the system.
The recent investigation has triggered the resignation of senior executives in Kenya’s energy sector amid allegations of fuel stock data manipulation and the procurement of an emergency cargo at inflated prices.
The affected officials include Energy and Petroleum Regulatory Authority Director-General Daniel Kiptoo, Kenya Pipeline Company Managing Director Joe Sang, and Petroleum Principal Secretary Mohamed Liban.
According to Reuters, the Kenyan government said the manipulated data was used to justify the emergency importation of fuel, despite standing contracts with Saudi Aramco Trading Fujairah, Abu Dhabi’s ADNOC Global Trading Ltd, and Emirates National Oil Company Singapore Ltd., all of which are meeting their contractual obligations.
Energy and Petroleum Cabinet Secretary Opiyo Wandayi confirmed that it was findings from this first shipment that led authorities to take decisive action against a second cargo headed for Mombasa.
The decision comes amid growing concerns about malpractice within the sector and fears of supply disruptions tied to tensions in the Middle East.
“The government wishes to assure the public that the situation is under control. When full information about the fuel shipment that is the subject of investigations emerged, we stopped the delivery of a second cargo under similar circumstances, thus protecting and securing public interest,” Wandayi said.
Government vows crackdown on oil cartels
Speaking in Narok, President William Ruto struck a defiant tone, linking the crisis to entrenched cartels and external pressures tied to instability in the Middle East.
“We have a problem related with the Middle East, and they are trying to bring another confusion here in Kenya. I must say for the record, this is the administration that is going to deal firmly, decisively and conclusively with all cartels,” Ruto said.
He added that his administration would dismantle entrenched networks in the oil sector just as it has done in the coffee and tea industries since taking office.
Despite the disruptions, the government has moved to calm fears of fuel shortages. Wandayi emphasized that petroleum stocks remain sufficient to meet current demand and that the country’s supply framework remains intact.
“We further wish to reassure the public that there are sufficient stocks of petroleum products to meet current demand,” he said, adding that the government remains committed to “ensuring an uninterrupted supply of quality petroleum products for both Kenya and regional markets.”
The ministry has also launched an internal review of petroleum management systems to strengthen transparency and protect supply chain integrity, warning that there will be “no tolerance for cartels, profiteers, or extortionists” exploiting the crisis.
