DCI gets ultimatum over former energy bosses fuel probe

This story has significance for readers across Kenya and beyond.

Parliament has issued an ultimatum to the investigators to submit a report on the outcome of a probe of three senior officials in the energy sector arrested in April over accusations of manipulating fuel stock data and procuring an emergency cargo at inflated prices.

The Energy committee of the Senate gave the Directorate of Criminal Investigations (DCI), Director of Public Prosecutions (DPP) and other State entities to complete the probe and determine the fate of the three within 60 days amid fears the investigations have gone cold.

The deadline lapses on October 19 in the wake of delays in prosecuting the officials who were arrested on April 2, 2026.

The three -- former Principal Secretary for Petroleum Mohamed Liban, former Kenya Pipeline Company (KPC) managing director Joe Sang, and former Energy and Petroleum Regulatory Authority (Epra) director-general Daniel Kiptoo -- were released on cash bail after spending days in the police cells.

The DCI, whose investigations took detectives to Saudi Arabia, has yet to make its findings public.

“Any ongoing administrative, disciplinary or criminal proceedings involving the said officers be concluded expeditiously but without prejudice to due process,” the Senate committee on Energy says in a report.

“Accordingly, the committee recommends that the Ministry of Energy and Petroleum, the Public Service Commission, the State Corporations Advisory Committee, the boards of Epra and KPC together with all relevant investigative agencies, submit a consolidated status report to the Senate within 60 days of adoption of this report detailing the progress, findings and outcomes of all investigations and disciplinary proceedings relating to the affected officials.”

DCI did not respond to requests for comment by the time of going to press despite promises.

Manipulated data

The Ministry of Energy said in April that the manipulated data was used to justify the emergency importation of fuel, despite standing contracts with Saudi Aramco Trading Fujairah, Abu Dhabi's ADNOC Global Trading Ltd, and Emirates National Oil Company Singapore Ltd., arguing that the firms were all meeting their contractual obligations.

It alleged that the emergency shipment was overpriced, of substandard quality, and procured at rates significantly higher than those agreed under existing deals.

The DCI were expected to prepare charges against the three under the Anti-Corruption and Economic Crimes Act.

One Petroleum was tapped alongside Oryx Energies to supply the emergency stock of petrol in the wake of a decision by Kenya’s top security organ, the National Security Council Committee (NSCC), to import the backup cargoes of petrol.

At the time, a vessel carrying 85,000 metric tonnes of petrol belonging to Gulf Energies got stuck at the port of Jebel Ali in the wake of Iran’s closure of the Strait of Hormuz.

One Petroleum and Oryx Energies were on March 25, 2026 awarded the contracts to ship in 81.3 million litres each of petrol, in deals that would later trigger a fall-out and the resignations and arrests of three top officials in the country’s energy sector. Hass Petroleum and E3 Energy also placed tenders for the emergency stocks.

Kenya sought Uganda’s aid when it had 124.39 million litres of petrol for both local and transit markets as of March 19.

The stock was to last the country for 16 days, meaning that Kenya faced a stock-out of petrol from April 4, 2026.

Uganda keeps part of its fuel in KPC reserves and this is what Kenya was seeking to tap.

Fuel crisis

Kenya then tapped One Petroleum and Oryx Energies to import 60,000 tonnes of petrol each, outside the government-to-government (G-to-G) deal, to avert the impending fuel crisis.

Within three days of the award of the deal, One Petroleum secured a vessel owned by BP and headed to Angola. The shipment did not conform to Kenyan fuel standards. One Petroleum then sought waivers on the specifications from the government.

The State directed One Petroleum to recall the product, a move that industry executives said was not feasible given that it had already been discharged into KPC’s system and mingled with other products.

The cancellation came hours before Oryx’s cargo had arrived at the port of Mombasa, with the firm later protesting the government’s decision to revoke the imports.

One Petroleum protested the cancellation, saying that it incurred substantial commercial losses tied to demurrage, customs warehouse rent and inability to liquidate the product at its cost, besides reputational damage.

The firm said that it had not initiated litigation against the State for the botched deal.

“To date, no penalties or formal liabilities have been imposed on the company by the government arising from the transaction. One Petroleum has not made any claim against the government,” One Petroleum said in documents tabled in the Senate in June.

Reporting originally appeared via Business Daily. Read the full source for additional context.