Govt to punish oil companies over artificial fuel shortage

During a press conference on Thursday, Energy Cabinet Secretary Monica Juma stated that the government would work closely with Kenyan security agencies to ensure that those found responsible are brought to justice.

According to CS Juma, the government will not tolerate entities or individuals causing deliberate distress, and has now asked entities that are unwilling to work within the existing framework to leave the Kenyan market.

“Any entity that is not ready, or willing to work within the framework of laws in Kenya is invited to vacate this market promptly,” CS Juma said on Thursday

According to the CS, the Energy and Petroleum Regulatory Authority (EPRA) has issued show cause orders to oil marketers who failed to meet the required minimum operational stock levels, resulting in stock outs.

According to the CS, it is a crime not to keep such stocks because they ensure the country's supply security.

At the same time, the CS noted that some oil marketers and petrol stations had sold fuel at prices higher than the published maximum price, in violation of Section 99 (1n) of the Petroleum Act of 2019.

“EPRA has issued show cause letters to all those companies and persons and whoever is found in breach will face stern action,” she added. 

Companies that hoarded fuel in anticipation of the price increase have also been sanctioned, with those who sold below their normal local quota during the crisis having their capacity. reduced. 

On the other hand, those who sold above their normal quota during the crisis will benefit from additional capacity. 

“Those who sold less will have their capacity reduced,” Cs Juma added, “The rationalization of the petroleum import capacity sharing is aimed at creating a healthy balance between transit and local volume,” 

According to Juma, the countrywide fuel shortage has all the hallmarks of deliberate economic sabotage, which is a capital offense under Kenyan law.

“This situation can only be equated to deliberate efforts to sabotage this economy, which constitutes a capital crime in our statute books,”CS Juma said. 

During the press conference, the CS confirmed that Kenya has an adequate supply of petroleum and petroleum products.

“We have determined that some players have been hoarding these products, speculating that a price review on the 14th of April would provide them with a cash windfall,” the CS added. 

"This speculation is not only a display of bad faith, but it is also insensitive to the operators' mandate." the CS added

According to the CS, some players had also diverted cargo destined for local use for exports within the region in order to reap abnormal profits.