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UDA dismisses cartel claims in fuel scandal, warns Gachagua and Ndindi Nyoro

UDA dismisses cartel claims in fuel scandal, warns Gachagua and Ndindi Nyoro
UDA Secretary General Hassan Omar during a past event. PHOTO/@UDAKenya/X

The United Democratic Alliance (UDA) has dismissed claims surrounding the reported infiltration of cartels in the fraudulent importation of oil in the country.

In a press briefing on Monday, April 6, 2026, UDA Secretary General Omar Hassan dispelled rumours being spread by the opposition that top government officials are involved in the scandal.

He termed the claims as mere political exploitation of the matter, warning former Deputy President party leader Rigathi Gachagua and Kiharu MP Ndindi Nyoro to desist from making the misinformed statements.

“On this critical national matter, their commentary has not only been discordant but also conspicuously superficial, betraying a troubling lack of intellectual depth and policy understanding,” he said.

UDA maintained that the scheme involved importing multiple highly priced cargoes between Ksh50 and Ksh 80 above existing G-to-G shipments, a move that would have triggered runaway inflation and crippled the economy.

Rigathi Gachagua speaks during a church service at AIPCA Gakoe, Gatundu North in Kiambu County. PHOTO/https://www.facebook.com/DPGachagua
Rigathi Gachagua speaks during a church service at AIPCA Gakoe, Gatundu North in Kiambu County. PHOTO/https://www.facebook.com/DPGachagua

Fuel prices

Omar further clarified that no fuel prices will change, and adequate safeguards have been instituted to mitigate risks posed by substandard cargo.

It also called for an expeditious probe against Rigathi Gachagua, demanding legal action if he is found culpable.

Moreover, the UDA mouthpiece has revealed that the government has initiated urgent recovery proceedings against importers involved in the controversial fuel importation scandal after the Ministry of Energy announced that over Ksh3 billion had been lost in the scheme.

Kiharu MP Ndindi Nyoro at a past function. PHOTO/@NdindiNyoro/X
Kiharu MP Ndindi Nyoro at a past function. PHOTO/@NdindiNyoro/X

Omar has stated that the recovery process is aimed at shielding taxpayers from any projected financial loss.

“We confirm that urgent recovery proceedings against the importers have commenced to ensure Kenyan taxpayers are shielded from any financial exposure,” he said.

To deter future violations, Omar said the government is proposing punitive sanctions amounting to five times the projected loss. This means the Ksh3 billion lost in the scheme will now be multiplied by Ksh15 billion.

Funds recovered from the importers are earmarked for investment in Level Six hospitals, transforming a potential economic setback into a long-term public health benefit.

“We further propose punitive sanctions amounting to 5 times the projected loss. This recovered cash should be channelled towards strengthening level six hospitals, thereby converting a potential loss into a long-term public health investment,” Omar said.

The UDA’s statement comes amid a deepening controversy in the energy sector, triggered by a questionable procurement deal involving substandard fuel allegedly orchestrated by senior officials within the Ministry of Energy and Petroleum.

The scandal

Among those who have resigned and are currently in police custody are former Petroleum Principal Secretary Mohammed Liban, former Kenya Pipeline Corporation Managing Director Joe Sang, and Energy and Petroleum Regulatory Authority (EPRA) Director General Daniel Kiptoo.

The trio, alongside another ministry official, is accused of facilitating the importation of substandard fuel into the country, sidestepping the government’s existing government-to-government (G2G) agreement with Saudi Arabian firms.

The deal, estimated at over Ksh4 billion, is reported to have resulted in losses of approximately Ksh 3 billion, according to the ministry.

This development has sparked concern among the public about a potential increase in fuel prices, with many fearing that ordinary citizens may ultimately bear the burden of the agreement.

In response, Omar reassured Kenyans that pump prices would not rise as a result of the situation. He stated that EPRA would retain the G2G pricing model in the upcoming review to keep fuel costs stable and fair, while also ensuring consistent supply and protecting national energy security.

Former EPRA boss Dan Kiptoo. PHOTO/https://www.facebook.com/ParliamentKE
Former EPRA boss Daniel Kiptoo. PHOTO/https://www.facebook.com/ParliamentKE

“We offer our firm assurance to Kenyans that they will not be penalised at the pump for this ill-conceived fuel importation misadventure. In the forthcoming price review, EPRA will sustain the G2G pricing framework, which has demonstrably remained stable and reasonable and continued to offer the most reliable safeguard for fuel quality supply sustainability nd national energy security,” the SG said.

He further confirmed that all imported fuel shipments are undergoing mandatory quality testing, with the results to be made public, stressing that no procedures will be overlooked.

“There will be no waiver of such testing protocols as any such actions will amount to broad negligence and unacceptable dereliction of duties.”

The remarks follow assurances by William Ruto that any cartel found responsible will face consequences without exception.

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