Topic analysis

Kenya: Energy executives step down amid fuel manipulation probe

Five senior figures were arrested on allegations of purchasing an emergency fuel shipment at inflated prices. They are accused of trying to exploit the fuel crisis caused by the war in Iran. Top executives in Kenya's energy sector have stepped down amid accusations of manipulating fuel stock data amid rising costs due to the war in Iran , President William Ruto's office said in a statement on Saturday. The three resignations included Joe Sang, the managing director of the Kenya Pipeline Company (KPC); Daniel Kiptoo ​Bargoria, director general of the Energy and Petroleum Regulatory Authority; and Mohamed Liban, principal secretary for petroleum. The resignation of the latter civil servant was accepted by Ruto himself. The statement from the president's office pointed to alleged irregularities in Kenya's petroleum supply chain as the reason for the resignations. According to the government statement, the manipulation of fuel stock data was intended to justify an emergency import of fuel even though Kenya has several standing contracts. Despite the war in Iran and the closure of the Strait of Hormuz, the statement said Saudi Aramco Trading Fujairah, Abu Dhabi's ADNOC Global Trading Ltd, and Emirates National Oil Company Singapore Ltd were all meeting their contractual obligations. It added that the procurement of an overpriced, substandard quality emergency shipment of fuel "appears to have ​been done to exploit rising global prices and public anxiety, thereby creating ​a false impression of impending supply shortfall." "The government is committed to protecting the public interest and safeguarding national resources. Any act of economic sabotage will be thoroughly investigated, and those found responsible will face firm and decisive action," the statement added. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video The three individuals were arrested for their alleged role in the scandal, with Kenyan newspaper The Standard saying Joseph Wafula, the deputy director of petroleum in the Ministry of Energy, and Joel Mburu, a supply and logistics manager at KPC, had also stepped down after being arrested. According to the Daily Nation news site, the five men were arrested on Thursday, with detectives reportedly seizing hundreds of millions in Kenyan shillings. 1 million shillings is worth around $7,700 or €6,700. The deal between Kenya and the three suppliers mentioned above was part of a so-called government-to-government framework. This had been introduced in 2023 as a response to the market volatility and foreign exchange constraints seen in 2022 in the wake of the Russian invasion of Ukraine. Kenya is somewhat protected against energy price shocks as it generates around 90% of its energy from renewable sources , however, petroleum is still required to run things like vehicles. Edited by: Sean Sinico