CS Wandayi halts payments in Ksh4.8 billion unauthorised fuel import

Energy and Petroleum Cabinet Secretary Opiyo Wandayi has ordered the Energy and Petroleum Regulatory Authority (EPRA) to exclude a 60,000-metric-tonne consignment of super petrol from monthly cost computations, as it was imported outside the government-to-government (G-to-G) framework. He directed a freeze on all related payments and instructed One Petroleum Ltd to withdraw its invoices. The move aims to protect the fuel supply chain and prevent price hikes.

Energy and Petroleum Cabinet Secretary Opiyo Wandayi issued a statement on Tuesday, April 7, 2026, stating that a 60,000-metric-tonne consignment of super petrol was imported in contravention of G-to-G procedures. The shipment cost Ksh198,000 per metric tonne, compared to Ksh140,000 under the government arrangement, with a Ksh58,000 difference per tonne that could raise pump prices by up to Ksh14 per litre.

"The 60,000-metric-tonne consignment of super petrol was recently imported into the country in contravention of the procedures set out under the G-to-G contractual framework with international suppliers," Wandayi said. "This action posed a risk to the integrity of a system that has consistently safeguarded supply security and pricing stability."

In response, he directed EPRA to exclude the consignment from monthly petroleum cost computations and freeze all related payments pending investigations. One Petroleum Ltd must withdraw all issued invoices and issue credit notes, while oil marketing companies are warned against paying or lifting the product.

The developments follow warnings from fuel dealers that petrol prices could reach Ksh231.68 per litre in Nairobi by the next EPRA pricing cycle on April 14, 2026, up from the current Ksh178.28.

ተያያዥ ጽሁፎች

Energy CS Opiyo Wandayi assures Kenyans of secure fuel supplies after containing Ksh4B substandard fuel scandal.
በ AI የተሰራ ምስል

Energy CS Wandayi: Substandard fuel threat contained after Ksh4B scandal

በAI የተዘገበ በ AI የተሰራ ምስል

Energy and Petroleum Cabinet Secretary Opiyo Wandayi has assured Kenyans that the threat of substandard fuel from the ongoing Ksh4 billion procurement scandal has been contained, with supplies secure. This follows the arrests and resignations of four senior officials last week and the halting of a second suspicious shipment. EPRA has appointed Joseph Oketch as acting Director General.

Former Petroleum PS Mohamed Liban, ex-KPC MD Joe Sang, and former EPRA DG Daniel Kiptoo were released on police bail on April 6, 2026, days after their arrests and resignations in the Ksh4.8 billion irregular fuel importation scandal. Their lawyers denied wrongdoing, citing National Security Council recommendations, as the government moves to recover losses from importers.

በAI የተዘገበ

Energy and Petroleum Regulatory Authority Director General Daniel Kiptoo, Kenya Pipeline Company Managing Director Joe Sang, and Petroleum Principal Secretary Mohamed Liban have resigned after arrests linked to a Ksh4 billion fuel scandal. Officials allegedly manipulated stock data to enable irregular procurement outside the government-to-government agreement. President William Ruto's office called the deal a blatant breach involving substandard fuel.

President William Ruto has announced government measures to protect Kenyans from the impact of the Middle East conflict on fuel supplies. He highlighted a government-to-government fuel procurement deal cushioning price shocks and sufficient fertiliser stocks through September. He also pointed to growth in the tea sector and port activities.

በAI የተዘገበ

At the Southern Africa Oil and Gas Conference in Cape Town, Minister Gwede Mantashe urged harnessing South Africa's oil and gas resources amid disruptions from the US-Israeli war on Iran. He stressed legislative urgency to avoid litigation delays. Industry leaders echoed calls for diversified energy portfolios.

South African petrol prices will rise by R3.06 per litre to R23.25 inland from midnight on 1 April, while diesel reaches a record R26.11 per litre after a R7.51 increase. The hike stems from global oil prices exceeding $100 per barrel amid the Iran war and a weakened rand. A temporary R3 per litre reduction in the fuel levy cushions the impact.

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The Department of Energy stated that March 9 is the final day for capped fuel prices, with adjustments taking effect on March 10. Several gas stations reported supply shortages from the rush of customers. This occurs amid global oil price hikes due to escalating Middle East conflicts.

 

 

 

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