EPRA Boss Daniel Kiptoo, PS Liban, KPC MD Joe Sang Resign Hours After Arrest

EPRA Boss Daniel Kiptoo, PS Liban, KPC MD Joe Sang Resign Hours After Arrest

Three senior officials in Kenya’s energy sector have resigned hours after their arrest over a multi-billion shilling fuel procurement scandal that has rocked the Ministry of Energy and Petroleum.

Energy and Petroleum Regulatory Authority (EPRA) Director General Daniel Kiptoo, Kenya Pipeline Company (KPC) Managing Director Joe Sang, and Petroleum Principal Secretary Mohamed Liban stepped down following allegations of manipulating fuel stock data to justify an irregular emergency fuel purchase.

The resignations were confirmed in a statement from the Office of the President, signed by Head of Public Service Felix Koskei and dated April 4, 2026.

“The President has received the resignation of Mr Mohamed Liban as Petroleum Principal Secretary, alongside the exit of Kenya Pipeline Company Managing Director Joe Sang and EPRA Director General Daniel Kiptoo Bargoria, following decisions by their respective boards,” the statement read.

The developments come amid intensifying investigations into an alleged scheme in which officials falsified data on in-country fuel stocks, creating the impression of an imminent shortage. This, authorities say, was used to justify the procurement of an emergency fuel shipment valued at approximately Ksh4 billion.

According to the presidency, the procurement was conducted outside the government-to-government (G-2-G) framework Kenya maintains with Gulf oil suppliers, raising serious questions about compliance with established procedures.

“The shipment in question was procured in blatant breach of the G2G framework, at prices significantly above contracted rates, in violation of emergency procurement procedures, and was of substandard quality,” the President’s office stated.

Investigators believe the alleged manipulation was designed to exploit rising global oil prices and public anxiety, effectively manufacturing a crisis to facilitate the controversial purchase.

The scandal deepened following the arrest of the three officials, alongside Petroleum Deputy Director Joseph Wafula, by the Directorate of Criminal Investigations (DCI). Authorities are probing their role in procuring and facilitating the distribution of substandard fuel into the Kenyan market.

Preliminary findings indicate that a consignment aboard the vessel MV Paloma, initially destined for Angola, was diverted to the Port of Mombasa under unclear circumstances before being released into local supply chains.

Sources familiar with the investigation suggest the shipment, reportedly linked to Saudi Aramco, may have been overpriced by more than Ksh4 billion and failed to meet Kenya’s fuel quality standards, raising concerns over potential financial losses and risks to consumers.

In addition to the resignations, the government confirmed that disciplinary proceedings have been initiated against other officials, including Deputy Director Joseph Wafula and Supply and Logistics Manager Joel Mburu, as part of broader administrative action.

“Further updates will be provided as investigations progress, including administrative measures to ensure full accountability, such as the reversal of irregular shipment requisitions and their alignment with the contracted G2G framework,” the statement added.

Meanwhile, leadership changes have already been effected at KPC, with Pius Mwendwa appointed as acting Managing Director following Sang’s exit. In a statement signed by Board Chair Faith Boinett, the company assured stakeholders that its operations remain stable and unaffected.

The unfolding crisis has also triggered political reactions, with lawmakers calling for further accountability at the highest levels of the ministry. Kakamega Senator Boni Khalwale has led calls for the resignation or arrest of Energy Cabinet Secretary Opiyo Wandayi, citing what he termed as “gross incompetence.”

As investigations continue, the government has pledged to take firm action against those found culpable under Kenya’s economic crimes framework, while also implementing corrective measures to restore integrity in the fuel supply chain.

The scandal now stands as one of the most significant governance tests for the energy sector in recent years, with its outcome likely to shape public confidence and future reforms in the management of strategic national resources.

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EPRA Boss Daniel Kiptoo, PS Liban, KPC MD Joe Sang Resign Hours After Arrest