Kenya's Energy Sector Leadership Collapses Over Fuel Procurement Scandal

Kenya's Energy Sector Leadership Collapses Over Fuel Procurement Scandal

2026-04-05 region

Nairobi, 5 April 2026
Three of Kenya’s most senior energy officials resigned on 4 April 2026 following revelations of a massive fuel procurement fraud. The scandal involves the irregular purchase of 68,000 tonnes of substandard fuel worth Sh2.5 billion, procured at inflated prices through manipulated stock data designed to exploit rising global fuel costs and create artificial scarcity fears amongst the public.

Senior Officials Exit Amid Mounting Pressure

The resignations build upon an escalating scandal that has already claimed multiple careers in Kenya’s energy apparatus. This latest development follows our previous coverage of mounting calls for Energy Cabinet Secretary Opiyo Wandayi’s resignation over a £24 million fuel scandal (https://kakuma.bytes.news/2d85124-Energy-Minister-Fuel-Crisis/). Petroleum Principal Secretary Mohamed Liban tendered his resignation directly to President William Ruto, who accepted it on 4 April 2026 [1]. Meanwhile, the boards of their respective organisations accepted the resignations of Kenya Pipeline Company Managing Director Joe Sang and Energy and Petroleum Regulatory Authority Director General Daniel Kiptoo Bargoria on the same day [1]. Notably, Joe Sang had already been temporarily replaced on 3 April 2026, signalling the urgency of the situation [1].

Government-to-Government Framework Violated

The scope of the irregularities has been laid bare by Felix Koskei, Dr Ruto’s Chief of Staff and Head of Public Service, who detailed systematic violations of established procurement protocols [1]. According to Koskei, the fuel shipment was ‘procured in clear violation of the Government-to-Government (G2G) framework, at a price far above the agreed contract rates, with total disregard for established emergency procurement procedures’ [1]. Perhaps most damning was his assessment that ‘the quality of the fuel was also substandard’ [1]. The manipulation appears to have been deliberately orchestrated to exploit market conditions, with Koskei stating that ‘this manipulation appears to have been designed to take advantage of rising global fuel prices and public anxiety, creating a false impression of an impending supply shortage’ [1].

Criminal Investigation Intensifies

The Directorate of Criminal Investigations has moved swiftly to pursue criminal charges against those involved in the scheme. On 2 April 2026, five individuals were arrested and held at Gigiri, Capitol Hill and Lang’ata police stations, with detectives seizing money running into hundreds of millions of shillings [1]. The following day, 3 April 2026, these suspects were transferred to DCI headquarters along Kiambu Road [1]. By 4 April 2026, the DCI confirmed it had recorded statements from both government officers and executives of One Petroleum Ltd, the company associated with Mohamed Jaffer that imported the contentious 68,000-tonne consignment worth Sh2.5 billion [1]. Investigations have also begun into Joseph Wafula, Deputy Director of Petroleum in the Ministry, and Joel Mburu, Supply and Logistics Manager at KPC [1].

No Escape from Criminal Liability

The DCI has made clear that resignation from public office will not shield the officials from potential criminal prosecution. In a stern warning, investigators stated that ‘resignation from office does not in any way exonerate or absolve the suspects and persons of interest from criminal culpability’ [1]. The suspects are therefore ‘strongly urged to cooperate fully with the investigators’ [1]. The net continues to widen, with executives of Oryx Energies having been summoned to record statements as part of the expanding investigation [1]. Meanwhile, the government has committed to escalating a full inquiry into the breaches, including the procurement of substandard emergency fuel at inflated prices [1]. This comprehensive approach suggests authorities are determined to uncover the full extent of the corruption network that enabled such systematic manipulation of Kenya’s critical fuel supply infrastructure.

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energy sector government resignations