Former Govt Officials Liban Mohamed, Joe Sang & Daniel Kiptoo Released on Bail

Former Govt Officials Liban Mohamed, Joe Sang & Daniel Kiptoo Released on Bail

Former Petroleum Principal Secretary Mohamed Liban, ex-Kenya Pipeline Company Managing Director Joe Sang, and former Energy and Petroleum Regulatory Authority Director General Daniel Kiptoo have been released on police bail, days after their arrest in connection with a multi-billion shilling fuel importation scandal.

The three were freed on Monday, April 6, pending the conclusion of investigations and possible arraignment. Authorities have yet to confirm whether formal charges will be preferred against them as inquiries into the controversial procurement continue.

According to their legal representatives, the former officials acted within the scope of government directives and should not be held personally liable for the disputed transaction.

“Our clients acted on recommendations issued by the National Security Council Committee and did not engage in any wrongdoing,” their lawyers told reporters.

Documents reviewed by investigators indicate that the National Security Council Committee (NSCC) had, on March 9, recommended the sourcing of emergency fuel supplies from alternative channels. The directive was reportedly intended to cushion the country from potential supply disruptions linked to instability in the Middle East.

The procurement in question involved the importation of approximately 69 million litres of fuel, some of which has since been flagged as substandard. The deal, valued at about Ksh4.8 billion, was executed outside the government-to-government (G2G) fuel supply framework that Kenya maintains with Gulf-based suppliers, including Saudi Arabia.

The departure from the G2G arrangement has been central to the ongoing investigations, with authorities seeking to establish whether procurement procedures were breached and whether the state incurred financial losses.

At least 20 individuals have so far recorded statements with the Directorate of Criminal Investigations (DCI), including senior executives from private sector firms linked to the shipment. Among them is a managing director from a major petroleum company identified as a key person of interest.

Investigators are examining the company’s role in the importation and distribution of the fuel cargo, particularly amid concerns that the product did not meet required quality standards.

The scandal has triggered significant changes within key energy institutions. Following his resignation, Kiptoo has been replaced in an acting capacity, with Joseph Aketch expected to formally assume leadership at EPRA later this week. Other affected agencies are yet to announce substantive replacements for officials who stepped down.

Government agencies, including the Kenya Pipeline Company and EPRA, have issued separate statements in recent days seeking to reassure the public that safeguards remain in place to protect national fuel reserves and prevent misuse of public resources.

Meanwhile, the financial implications of the deal continue to attract scrutiny. The Ministry of Energy has indicated that the substandard fuel could have resulted in a price variance of up to Ksh43.4 per litre compared to the G2G framework, raising concerns about potential losses to the economy.

In response, the United Democratic Alliance (UDA) has proposed stringent penalties targeting those responsible for the irregular importation. Secretary General Hassan Omar confirmed that the government is considering sanctions amounting to five times the estimated losses.

“We are proposing punitive measures that will ensure taxpayers are fully protected from any financial exposure arising from this matter,” Omar said.

The proposal could see fines rise to as much as Ksh15 billion, significantly exceeding the estimated losses from the transaction.

As investigations continue, the release of the three former officials on bail marks a new phase in the unfolding scandal, with attention now turning to the outcome of forensic audits, regulatory reviews, and potential prosecutions.

The case has underscored broader concerns about accountability and transparency in Kenya’s energy sector, particularly in the management of strategic imports and emergency procurement processes.

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Former Govt Officials Liban Mohamed, Joe Sang & Daniel Kiptoo Released on Bail