Principal Secretary for Petroleum Mohamed Liban has resigned as probe into the importation of substandard fuel intensifies.
In a press release issued Saturday, Chief of Staff and Head of the Public Service Felix Koskei confirmed that Kenya Pipeline Company (KPC) Managing Director Joe Sang and Energy and Petroleum Regulatory Authority (EPRA) Director General Daniel Kiptoo Bargoria had also stepped down.
The resignations follow the arrest of the three officials by detectives from the Directorate of Criminal Investigations over the alleged importation of substandard fuel in breach of existing supply arrangements.
Koskei said preliminary findings indicate that senior officials tasked with overseeing the petroleum supply chain may have manipulated data on local fuel stocks to create a false impression of an impending shortage.
“The President notes with grave concern that primary duty bearers responsible for administering the petroleum supply chain may have manipulated data on in-country fuel stocks. This appears to have been done to exploit rising global prices and public anxiety, thereby creating a false impression of an impending supply shortfall,” said Koskei.
He revealed that the cargo was sourced outside the Government-to-Government (G2G) fuel supply framework introduced in 2023 and was procured at inflated prices, in violation of established emergency procedures.
“The shipment in question was procured in blatant breach of the G2G framework, at a price significantly above the contracted rates, in complete disregard of established emergency procurement procedures, and was of substandard quality,” Koskei stated.
He warned that the government will take firm action against any individuals found culpable of acts deemed to constitute economic sabotage.
“Petroleum products as the backbone of the economy, and in recognition of the compelling public interest, the matter has been escalated to the relevant investigative agencies for a full and comprehensive inquiry. All governance actors within the sector are required to provide full access to relevant information to facilitate investigations.”
Meanwhile, administrative action has been initiated against Deputy Director of Petroleum Joseph Wafula, while the Kenya Pipeline Company has begun disciplinary proceedings against Supply and Logistics Manager Joel Mburu, who are alleged to have been involved in the irregular procurement.
