Fresh information has come to light about a contentious multi-billion-shilling oil import deal that resulted in the apprehension of senior energy executives in Kenya.
Law enforcement authorities arrested four top energy officials on Friday morning. Those taken into custody included Energy and Petroleum Regulatory Authority (EPRA) Director General Daniel Kiptoo, Kenya Pipeline Company Managing Director Joe Sang, Petroleum Principal Secretary Mohamed Liban, and Deputy Director of Petroleum Joseph Wafula.
During the operation, detectives from the Directorate of Criminal Investigations (DCI) discovered approximately Ksh100 million in cash at the residences of the detained individuals.
The arrests center on a suspicious oil shipment originally bound for Angola but diverted to the Port of Mombasa under questionable circumstances.
The vessel, MV Paloma, arrived in Mombasa carrying over 60,000 metric tonnes of fuel, which investigators believe circumvented Kenya’s official government-to-government oil importation system.
Sources indicate the fuel originated from Saudi oil giant Saudi Aramco, which sold it to another international energy company before it was allegedly rerouted through a local Kenyan petroleum importer.
Reports from credible sources confirm the cargo was discharged at Mombasa Port between March 27 and March 29, 2026.
Detectives suspect the diversion allowed the fuel to enter the Kenyan market outside authorized procurement channels, sparking concerns about sector transparency.
Initial investigations suggest the consignment may have been overvalued by more than Ksh4 billion, with a second expected shipment potentially increasing taxpayer losses to nearly Ksh8 billion.
The DCI may have capitalized on fuel shortages caused by abrupt supply interruptions.
Earlier reports had indicated complications with a shipment from Emirates National Oil Company that experienced delays due to disruptions in the Strait of Hormuz, creating temporary supply shortfalls.
Investigators now believe such disruptions could have been exploited to justify the irregular emergency import that deviated from standard oil importation procedures.
Moreover, the detectives have raised quality concerns about the consignment, including excessive sulphur levels that failed to comply with Kenyan regulatory standards.
This irregularity was reportedly identified by a Kenya Pipeline Company quality assurance supervisor, triggering internal conflicts before the matter was escalated to the DCI.
The detained officials underwent interrogation for more than seven hours at DCI headquarters on Kiambu Road in Nairobi as investigators continue to assemble evidence.