Govt to Surcharge Importers to Recover Ksh 3 Billion Lost in Fuel Scandal
Speaking to the media on Monday, April 6, Hassan Omar, Secretary General of the United Democratic Alliance (UDA), confirmed that legal and financial measures are already underway to recover the funds from the entities involved.
“We confirm that urgent recovery proceedings against the importers have commenced to ensure Kenyan taxpayers are shielded from any financial exposure,” Omar stated.
The disputed transaction involved the importation of fuel at significantly inflated prices, reportedly ranging between Ksh50 and Ksh80 per litre—well above the rates set under the government-to-government (G2G) fuel supply framework. The arrangement raised concerns over procurement integrity and compliance with established pricing mechanisms.
To deter similar violations in the future, Omar disclosed that the government is considering imposing punitive penalties amounting to five times the value of the losses incurred. If implemented, the proposed sanctions could see the Ksh3 billion loss rise to a recovery target of approximately Ksh15 billion.
“We further propose punitive sanctions amounting to five times the projected loss. This recovered cash should be channelled towards strengthening Level Six hospitals, thereby converting a potential loss into a long-term public health investment,” he added.
The announcement comes amid ongoing investigations into the energy sector following the arrest and resignation of senior officials linked to the procurement deal. Those implicated include former Petroleum Principal Secretary Mohammed Liban, former Kenya Pipeline Company Managing Director Joe Sang, and former Energy and Petroleum Regulatory Authority Director General Daniel Kiptoo.
The officials, alongside another ministry officer, are accused of facilitating the importation of substandard fuel valued at over Ksh4 billion outside the G2G framework, which typically governs fuel imports through agreements with Gulf-based suppliers.
However, Omar sought to reassure Kenyans that consumers would not bear the cost of the alleged irregularities.
“We offer our firm assurance to Kenyans that they will not be penalised at the pump for this ill-conceived fuel importation misadventure,” he said.
He added that the Energy and Petroleum Regulatory Authority (EPRA) would maintain the G2G pricing framework in its upcoming fuel price review, describing it as stable, reliable, and critical to ensuring both affordability and supply security.
In addition, the government confirmed that comprehensive quality testing is being conducted on the imported fuel cargo to determine its suitability for use. Officials emphasised that all regulatory protocols will be strictly followed.
“There will be no waiver of such testing protocols as any such actions will amount to gross negligence and unacceptable dereliction of duty,” Omar stated.
As investigations continue, the government’s recovery efforts and proposed sanctions are expected to play a central role in addressing financial losses while reinforcing accountability within the energy sector. Analysts note that the outcome of the case could have lasting implications for procurement practices, regulatory oversight, and public confidence in the management of critical national resources.
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Govt to Surcharge Importers to Recover Ksh 3 Billion Lost in Fuel Scandal
