Kenya energy sector oversight and procurement probe

The Kenyan Senate has initiated measures to increase oversight of the nation’s petroleum sector following concerns over supply uncertainties and procurement processes. Initially, the Senate Standing Committee on Energy directed the Ministry of Energy and Petroleum to create a digital platform to monitor petroleum stocks, imports, and allocations in real time. This system aims to integrate data from the Kenya Pipeline Company, the Energy and Petroleum Regulatory Authority (EPRA), and the Kenya Bureau of Standards (KEBS) to track stock levels at the individual marketing company level.

Parallel to these regulatory efforts, investigations are underway regarding the alleged manipulation of fuel stock data. The Senate Energy Committee has issued a 60-day ultimatum for investigative agencies to submit a report concerning three former energy officials: former Principal Secretary for Petroleum Mohamed Liban, former Kenya Pipeline Company managing director Joe Sang, and former EPRA director-general Daniel Kiptoo.

The probe focuses on allegations that these officials justified emergency fuel procurements at inflated prices. Specifically, investigators are examining contracts awarded to One Petroleum and Oryx Energies for approximately 60,000 tonnes of fuel each. Reports indicate that One Petroleum quoted a premium of roughly US$290 per tonne, which is significantly higher than the US$84 premium typically seen under state-to-state oil credit arrangements.