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Liban, Sang and Kiptoo Resign as Ruto Orders Probe Into Oil Scandal

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President Dr William Samoei Ruto
President Dr William Samoei Ruto
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President William Ruto has ordered a sweeping investigation into alleged irregularities in Kenya’s petroleum supply chain, following claims that senior officials manipulated fuel stock data to justify an irregular and costly import.

In a statement on Saturday, April 4, 2026, the Executive Office of the President said the inquiry targets “primary duty bearers responsible for administering the petroleum supply chain” who are suspected of falsifying information to create “a false impression of an impending supply shortfall.”

The government defended the Government-to-Government (G2G) fuel supply framework introduced in 2023, saying it was a strategic intervention following the 2022 fuel crisis marked by long queues and unsafe handling practices.

“This framework was introduced as a strategic State intervention following recurrent petroleum product shortages experienced in 2022, characterised by long queues at filling stations and unsafe fuel handling practices,” the statement said.

The arrangement, the government noted, was designed to stabilise fuel supply and cushion the market against global volatility, while also addressing foreign exchange constraints experienced in 2022 and 2023.

Since its inception, the government said the framework has ensured stability in fuel availability and pricing.

“Since the inception of the G2G fuel supply arrangement, fuel availability in Kenya and across the region has remained relatively stable, contributing to consistent pump prices and easing the fiscal burden previously associated with subsidies,” the statement said.

Kenya has also continued to receive uninterrupted fuel supplies despite geopolitical tensions, with contracted suppliers—including Aramco Trading Fujairah, ADNOC, Global Trading Ltd and Emirates National Oil Company Singapore Pte Limited—meeting their obligations.

Deliberate scheme to mislead

Despite the stable supply position, the President raised alarm over alleged manipulation of fuel stock data.

“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 said.

The government described the alleged actions as an “egregious misrepresentation” that led to the irregular procurement of an emergency fuel cargo by the Ministry of Energy and Petroleum.

According to the statement, the shipment was procured in “blatant breach” of the G2G framework, at inflated prices, outside established emergency procurement procedures, and was of substandard quality.

“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,” the statement added, citing the Anti-Corruption and Economic Crimes Act and the Penal Code.

Arrests and resignations

The matter has now been escalated to investigative agencies for a full probe, with arrests already made.

“On Thursday, 2nd April, 2026, the investigative agencies effected arrests of the principal officeholders,” the statement said.

Following the developments, Mohamed Liban resigned as Principal Secretary in the State Department for Petroleum, Joe Sang stepped down as Managing Director of Kenya Pipeline Company PLC and Daniel Kiptoo Bargoria resigned as Director General of the Energy and Petroleum Regulatory Authority.

Further administrative action has been initiated against Joseph Wafula, while disciplinary proceedings have begun against Joel Mburu, Supply and Logistics Manager at KPC.

Government vows accountability

The government said all sector players have been directed to provide full access to information to support investigations, stressing the strategic importance of petroleum products to the economy.

“The Government remains steadfast in safeguarding the public good and protecting national interests. Any act of economic sabotage will be fully investigated and met with firm and decisive action,” the statement said.

Authorities also indicated that further administrative measures may include reversing irregular shipment requisitions and aligning them with the G2G framework.

Investigations are ongoing, with more updates expected as the probe progresses.

Read: Kenya Targets Edible Oil Production in Agro-Industrial Shift

>>> CBK Raises Concern as Middle East War Fuels Surge in Global Oil Prices

Written by
BT Reporter -

editor [at] businesstoday.co.ke

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