Kenya's Sh12 Billion Fuel Scandal: Probe Extends Amid Calls for Accountability

Published 6 hours ago2 minute read
Pelumi Ilesanmi
Pelumi Ilesanmi
Kenya's Sh12 Billion Fuel Scandal: Probe Extends Amid Calls for Accountability

The National Assembly Energy Committee, chaired by Nakuru Town East MP David Gikaria, is preparing to finalize its report on the controversial Sh12 billion fuel importation scandal. The committee plans to hold an additional session to conclude its hearings and aims to submit its report for tabling in the House during the upcoming Thursday afternoon sitting. Gikaria stated that the committee is nearing the completion of its findings regarding what he described as an "irregular import that came."

Energy Cabinet Secretary Opiyo Wandayi had previously informed the committee that two additional fuel vessels, which were scheduled to dock in Mombasa, never arrived and were successfully turned away. The committee is also actively monitoring the outcomes of recent raids and inspections conducted by the Energy and Petroleum Regulatory Authority (EPRA). Furthermore, the lawmakers are investigating whether reported fuel shortages are genuine market phenomena or the result of alleged hoarding by some entities.

Regarding the companies linked to the scandal, Gikaria confirmed that One Petroleum had agreed to remove its fuel from Kenya's storage facilities. The committee continues to monitor developments concerning Oryx, which has indicated its intention to pursue legal action, challenging the cancellation of its import deal with the ministry on grounds of breach of contract. The committee will also examine the specifications for fuel required in the country, as indicated by the Kenya Bureau of Statistics (Kebs), and review the next steps Kebs plans to take. Gikaria cautioned against negotiations being influenced by external correspondence that might permit non-government-to-government imports, expressing hope that the disputed vessels will not discharge any of their cargo.

The ownership of the disputed fuel remains unclear. Gikaria claimed that the fuel does not belong to the Kenya Pipeline Company (KPC) but rather to oil marketing companies that have already paid for it. However, definitive details regarding ownership are pending, awaiting documentation from KPC's acting finance manager. In a related development that unfolded approximately two weeks prior to these committee updates, former EPRA boss Daniel Kiptoo, former KPC MD Joe Sang, and former PS Liban Mohamed spent a night at Gigiri Police Station in connection with the ongoing scandal.

In a broader context, Gikaria urged Kenyans to remain patient as EPRA prepares to announce new fuel prices for the next review cycle. He also issued a warning that global oil prices have seen an increase due to escalating geopolitical tensions involving Israel, the United States, and Iran.

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