Senate Mandates 60-Day Investigation into Former Energy Officials over Fuel Data Allegations

The Kenyan Senate has directed a comprehensive 60-day investigation into allegations against three former senior energy officials accused of manipulating fuel stock data and inflating prices during emergency fuel procurement.

The officials under scrutiny include former Petroleum Principal Secretary Mohamed Liban, ex-Kenya Pipeline Company managing director Joe Sang, and former Energy and Petroleum Regulatory Authority (EPRA) Director General Daniel Kiptoo. They were arrested on April 2, 2026, and subsequently released on cash bail after several days in custody.

Senate Committee Recommendations

The Senate Standing Committee on Energy has called for the swift conclusion of all ongoing administrative, disciplinary, and criminal proceedings involving the three, emphasizing that due process must be respected.

The committee also instructed the Ministry of Energy and Petroleum, Public Service Commission, State Corporations Advisory Committee, and the boards of EPRA and KPC, alongside relevant investigative bodies, to submit a consolidated status report within 60 days detailing progress and findings related to the investigations.

Background to the Probe

The probe was triggered by allegations that fuel stock data was deliberately manipulated to justify emergency imports despite active contracts with major suppliers including Saudi Aramco Trading Fujairah, ADNOC Global Trading Ltd. of Abu Dhabi, and Emirates National Oil Company Singapore Ltd. The Ministry of Energy contended that these companies met their contractual obligations, but the emergency fuel shipments were overpriced, substandard, and procured at rates exceeding agreed terms.

The investigations extended internationally, with detectives traveling to Saudi Arabia, but the Directorate of Criminal Investigations (DCI) has yet to release its findings publicly.

Fuel Crisis Context

The fuel shortage crisis emerged after a shipment of 85,000 metric tonnes of petrol owned by Gulf Energies was stalled at Jebel Ali port due to Iran’s closure of the Strait of Hormuz. This led to emergency procurement contracts being awarded to One Petroleum Limited and Oryx Energies Kenya Limited.

However, some of the emergency fuel shipments did not meet Kenyan standards, prompting recalls and cancellations, which resulted in disputes and financial losses for the companies involved.

Proposed Reforms

To prevent recurrence, the committee recommended establishing a statutory framework for emergency petroleum procurement within six months. This framework would clarify definitions, roles, approval processes, regulatory waivers, and accountability mechanisms.

Additional recommendations include implementing a real-time digital petroleum stock monitoring system, enforcing a minimum 30-day strategic stock requirement for oil marketing companies, and developing a national strategic petroleum reserve policy targeting reserves sufficient for at least six months of consumption.

The committee also urged assessment of the planned Dangote Refinery's capacity to support storage and energy security, alongside enhancing protections for compliant private suppliers and improving dispute resolution and communication protocols during supply disruptions.

Next Steps

All relevant agencies and bodies are expected to provide a consolidated report to the Senate within the stipulated 60-day period, outlining investigation progress, findings, and outcomes of any disciplinary or legal actions related to the implicated officials.