Documents Contradict CS’s Account on Substandard Fuel, Reveal 10-Day Gap

Documents Contradict CS’s Account on Substandard Fuel, Reveal 10-Day Gap

Fresh details have emerged surrounding the controversial fuel import saga, with documents revealing a 10-day gap between the arrival of a disputed fuel consignment and the government’s directive ordering its removal from the market.

The findings, highlighted in an investigative report by KTN News, raise new questions about the handling, distribution, and regulatory oversight of the shipment, which has since been flagged as potentially substandard.

According to the report, the 60,000 metric tonne consignment arrived at the Port of Mombasa on March 27 and was received by a private company linked to a Kenyan businessman. Shortly after clearance, portions of the fuel were reportedly distributed to various oil marketing companies.

Documents reviewed indicate that the transfer and billing of the product to distributors began on March 28, coinciding with correspondence between the Ministry of Trade and the Ministry of Energy authorising the handling and offloading of the cargo.

This timeline appears to contradict earlier remarks by Trade Cabinet Secretary Lee Kinyanjui, who had maintained that the cargo had not yet arrived at the time of the exchange.

“At the time these letters were being exchanged, we had not received the cargo,” Kinyanjui stated during an interview.

However, documentation suggests that the shipment had already docked and offloading processes had commenced, raising concerns over discrepancies between official statements and recorded timelines.

When pressed on whether the fuel met required quality standards, Kinyanjui pointed to the mandate of the Kenya Bureau of Standards (KEBS), which is responsible for setting and enforcing product specifications.

“The standard is set by KEBS, and the law allows the institution to give a waiver as long as the conditions of the waiver are within national interests. A technical committee goes through this and gives an evaluation, which was done,” he explained.

Further revelations indicate that oil distributors were invoiced on the same day approvals were issued, suggesting that the fuel had already entered Kenya’s distribution system. Typically, such fuel is channelled through storage and distribution infrastructure managed by entities such as the Kenya Pipeline Company, or directly transported to private storage facilities.

It would take approximately 10 days before Energy Cabinet Secretary Opiyo Wandayi issued a directive on April 7 ordering the removal of the consignment from the Kenyan market, citing concerns over procurement procedures and compliance with the government-to-government (G-to-G) fuel import framework.

“Oil marketing companies should not uplift or pay for the fuel, and all invoices must be cancelled with credit notes issued,” Wandayi directed at the height of the controversy.

By the time the directive was issued, however, part of the consignment had already been distributed, raising concerns that some of the fuel may have reached retail outlets across the country.

The developments have sparked anxiety among consumers and industry stakeholders, with questions emerging over whether substandard fuel could currently be in circulation.

Financial implications have also come into focus, with reports indicating that Kenya could be exposed to a liability of approximately Ksh3.53 billion linked to the disputed shipment, which had an estimated total value of Ksh8 billion.

Analysts note that the unfolding situation underscores the need for stronger coordination between regulatory agencies and government ministries in managing fuel imports, particularly under the G-to-G framework.

The controversy has also reignited debate on transparency and accountability in the energy sector, with calls for a thorough investigation to reconcile the discrepancies and establish responsibility.

As scrutiny intensifies, attention is now turning to whether regulatory bodies will provide clarity on the quality of fuel currently in circulation and the steps being taken to safeguard consumers.

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Documents Contradict CS’s Account on Substandard Fuel, Reveal 10-Day Gap