Key energy-sector leaders have resigned following arrests and investigations into claims of manipulation of fuel stock data and irregular procurement in Kenya’s petroleum supply chain.

Petroleum Principal Secretary Mohamed Liban, Kenya Pipeline Company Managing Director Joe Sang, who was replaced on Friday, April 3, 2026, and Energy and Petroleum Regulatory Authority Director General Daniel Kiptoo Bargoria submitted their resignations after being named in the scandal.

The resignations come as the government escalates a full inquiry into serious breaches, including the procurement of substandard emergency fuel at inflated prices in violation of the G2G framework. Officials also started disciplinary action against two more managers.

The government signed a government-to-government fuel supply agreement in 2023 with Aramco Trading Fujairah, ADNOC Global Trading Ltd, and Emirates National Oil Company Singapore Pte Limited. It introduced the deal after severe shortages in 2022 that caused long queues at filling stations and unsafe practices.

The arrangement aimed to stabilise supply, shield the market from global price swings, and ease pressure on foreign exchange reserves. Since the deal began, fuel availability stayed relatively stable in Kenya and the region. Pump prices held steady, and the government spent less on subsidies.

Supplies continued without a break, even during recent geopolitical tensions in the Middle East. The three contracted suppliers met all obligations and never reported problems delivering fuel.

Fuel data manipulation scandal

Despite this record, the president noted with grave concern that senior duty bearers may have manipulated data on local fuel stocks. They did so to exploit rising global prices and public anxiety, creating a false picture of an imminent shortage. This misrepresentation led the Ministry of Energy and Petroleum to buy one emergency cargo outside the G2G rules.

At the centre of the investigation is the claimed diversion of a fuel consignment initially destined for Angola but later rerouted to the Port of Mombasa under unclear circumstances. The shipment, carried aboard the vessel MV Paloma, is believed to have docked between March 27 and March 29, 2026.

Investigators say the shipment cost far more than the agreed rates, ignored proper emergency procedures, and arrived with substandard quality. The press release described the actions as an egregious breach of public trust that may amount to economic crimes under the Anti-Corruption and Economic Crimes Act and the Penal Code.

Preliminary investigations indicate the consignment may have been overpriced. Preliminary findings further suggest the officials may have falsified in-country fuel stock data, creating panic and the impression of an impending shortage to justify emergency procurement outside the G2G framework.

Investigators are also examining whether supply disruptions, including delays involving shipments through the Strait of Hormuz, were used to justify the irregular emergency import. Detectives have flagged the consignment for quality concerns, including elevated sulphur levels that reportedly failed to meet Kenya’s regulatory standards.

The anomaly was reportedly identified by a Kenya Pipeline Company quality assurance manager, triggering internal disputes before the matter was escalated to investigators. The persons of interest were interrogated for over seven hours at DCI headquarters along Kiambu Road as authorities continue to piece together evidence.

The government views petroleum products as the backbone of the economy. It therefore sent the case to investigative agencies for a full inquiry. All officials in the sector must give complete access to records. On Thursday, April 2, 2026, detectives arrested the main officeholders.

Chief of Staff Felix Koskei signed the statement on Saturday, April 4, 2026. He said the government will protect national interests.

“Any act of economic sabotage will be fully investigated and met with firm and decisive action against any individual or entity found culpable,” the release stated.

Further updates will come as the probe continues.