Nairobi, April 6, 2026 — The Kenyan government has launched formal recovery proceedings against fuel importers implicated in a procurement scandal that the Ministry of Energy says cost taxpayers upwards of Ksh 3 billion.
United Democratic Alliance Secretary General Hassan Omar confirmed the move on Monday, framing it as a necessary step to protect public finances from further exposure. The proceedings target importers who circumvented the government-to-government (G2G) pricing arrangement with Saudi Arabian suppliers, instead delivering fuel priced between Ksh 50 and Ksh 80 per litre — well above the agreed framework.
Steep Penalties Proposed
Beyond simple recovery, the government is pushing for sanctions equivalent to five times the total loss — a figure that would translate to roughly Ksh 15 billion in total penalties.
Omar indicated that any funds successfully clawed back would be directed toward upgrading Level Six hospitals, effectively converting a public finance crisis into a healthcare investment opportunity.
Key Officials Arrested
Three senior public servants have already resigned and are currently in police custody in connection with the scandal. They are former Petroleum Principal Secretary Mohammed Liban, former Kenya Pipeline Corporation Managing Director Joe Sang, and Energy and Petroleum Regulatory Authority Director General Daniel Kiptoo. A fourth ministry official is also implicated.
The group stands accused of orchestrating an importation deal worth over Ksh 4 billion for fuel that allegedly did not meet required quality standards, bypassing established procurement channels in the process.
Kenyans Assured on Pump Prices
Amid public anxiety over a potential fuel price spike, Omar moved to quell fears, stating that ordinary consumers would not bear the financial burden of the scandal at the pump. He said EPRA would maintain the G2G pricing framework in the next scheduled price review, ensuring continuity of both affordable prices and fuel quality standards.
The UDA Secretary General also confirmed that independent quality testing on the imported cargo is currently underway, with results to be made public. He stressed that no testing protocols would be relaxed or waived.
Political and Accountability Context
The scandal has drawn sharp attention to procurement oversight within the energy sector and follows a stern warning from President William Ruto that individuals or cartels found culpable would face full accountability under the law.
The case raises broader questions about the integrity of Kenya’s fuel supply chain at a time when the G2G framework was widely credited with stabilising prices and reducing the influence of middlemen in fuel importation.
