Accusations and Counter accusations continue to emerge in the Oil sector with the latest allegations of grand corruption at the Kenya Pipeline.

Major Oil Marketers says the latest scenario of artificial fuel shortage is only a tip of the ice berg saying the Kenyan oil industry has suffered gross malpractices since 2004 with loses hitting at billions of shillings.

The December fuel crisis that almost caused transport crisis over the Christmas festivity has brought to the fore deep malpractices in the Oil industry.

Stakeholders are  now getting bolder in stating the problems bedeviling the sector.

Many explanations have been advanced on what could have caused the shortages, among them an inefficient fuel distribution system by the Kenya Pipeline Company (KPC).

Sources told channel one that the sector has been suffering silently since December 2004. 

The accusing finger has been directed to KPC officials and energy ministry who have been allegedly been engaging in gross malpractices, irregularities, and grand corruption.

Top on the list of accusation is the alleged allocation at the Kipevu Oil Storage facility to one company that did not meet the specified qualifications.

The report says that since 2005, the major oil companies in Kenya and the East African region have continuously engaged the Ministry of Energy, through the office of the Permanent Secretary, to facilitate thorough investigations into the worrying scam that has threatened the stability of the oil industry.

It is alleged that some senior civil servants at the Ministry of Energy have on certain occasions turned the heat on some Oil marketers and have shut some marketers off the pipeline system and denied them their corporate right to collect product that they have legally procured and paid all relevant taxes for.

It is alleged that Triton has been operating as a corruption conduit, also involving very senior people at both KPC and the Ministry.

It is alleged that Since December 2004, reliable industry sources estimate that this illegal co-tangle involving some KPC ministry officials have irregularly raked in over Sh.8 billion.

Oil industry has lost another estimated Sh.8 billion through demurrage charges as a result of these illegal activities at KPC.