PS Liban, EPRA DG Kiptoo, Kenya Pipeline boss Sang resign after arrest over fuel importation saga

Three senior government officials implicated in the alleged importation of substandard fuel have tendered their resignations amid President William Ruto's call for action.

Petroleum Principal Secretary Mohamed Liban, Energy and Petroleum Regulatory Authority (EPRA) Director General Daniel Kiptoo Bargoria, and Kenya Pipeline Company (KPC) Managing Director Joe Sang resigned on Saturday as investigations continued.

State House Chief of Staff Felix Koskei, in a statement issued Saturday, said the resignations came after the arrest of the officials on Thursday, over what he described as “egregious misrepresentation” in the country’s petroleum supply chain.

“His Excellency the President has received the resignation of Mr Mohamed Liban, Principal Secretary, State Department for Petroleum," stated Koskei.

“The Board of the Kenya Pipeline Company PLC (KPC PLC) has received the resignation of Mr Joe Sang as Managing Director and the Board of the Energy and Petroleum Regulatory Authority (EPRA) has received the resignation of Mr Daniel Kiptoo Bargoria.”

The State Department for Petroleum and the management of the KPC have also initiated administrative actions against its Petroleum Deputy Director, Joseph Wafula, and Supply and Logistics Manager Joel Mburu, respectively.

According to Koskei, the irregularities stem from the alleged manipulation of fuel stock data by senior officials, creating a false impression of an impending low supply.

“The President notes with grave concern that primary duty bearers responsible for administering the petroleum supply chain may have manipulated data on in-country fuel stocks. This appears to have been done to exploit rising global prices and public anxiety, thereby creating a false impression of an impending supply shortfall,” the statement noted.

Authorities say the alleged misrepresentation led to the irregular procurement of an emergency fuel cargo by the Ministry of Energy and Petroleum.

“The shipment in question was procured in blatant breach of the G2G framework, at a price significantly above the contracted rates, in complete disregard of established emergency procurement procedures, and was of substandard quality,” Koskei noted.

The government warned that such actions may amount to economic crimes and thus those involved will face the full force of the law.

“Such falsification of information and misrepresentation by primary duty bearers within the petroleum supply chain constitute serious breaches of public trust and may amount to economic crimes under the Anti-Corruption and Economic Crimes Act … and the Penal Code,” added Koskei, who is also the Head of Public Service.

The probe comes despite the government maintaining that the Government-to-Government (G2G) fuel supply framework introduced in 2023 had stabilised fuel availability and prices.

Koskei further noted that Kenya has continued to receive uninterrupted fuel supplies from contracted firms, including Aramco Trading Fujairah, ADNOC Global Trading Ltd, and Emirates National Oil Company Singapore Pte Limited.

Meanwhile, the KPC has since appointed General Manager Finance Pius Mwendwa as acting Managing Director to ensure continuity of operations.

The Executive Office of the President said investigations are ongoing, with all relevant agencies directed to ensure full accountability.

The government added that further administrative measures will be taken as investigations progress, including reversing any irregular fuel shipments and aligning procurement with the G2G framework.