Kenya fuel executives resign as state probes fuel scarcity, supply chain issues

Kenya’s energy sector faced a sudden upheaval this week as three senior executives resigned amid allegations of fuel stock manipulation and questionable emergency procurement. President William Ruto accepted the resignation of Mohamed Liban, the country’s principal secretary for petroleum, while Kenya Pipeline Company confirmed that its managing director, Joe Sang, had also stepped down. Adding to the upheaval, Daniel Kiptoo Bargoria, director general of the Energy and Petroleum Regulatory Authority, resigned, all coinciding with a government-led investigation into irregularities in the nation’s petroleum supply chain.

Authorities investigate fuel stock discrepancies

The resignations follow accusations that fuel stock data was deliberately manipulated to justify an emergency import of petroleum at inflated prices. The government highlighted that the country already maintains standing contracts with major international suppliers, Saudi Aramco Trading Fujairah, Abu Dhabi’s ADNOC Global Trading Ltd, and Emirates National Oil Company Singapore Ltd, all of which, it said, were meeting their contractual obligations. Despite these agreements, the emergency shipment was allegedly procured at significantly higher rates, was of substandard quality, and appeared designed to exploit public anxiety over fuel shortages.

“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 government statement said, signaling the seriousness of the alleged misconduct. Investigative agencies have taken administrative action against additional officials, and arrests have been made, though no charges have yet been filed or names disclosed.

Retailers report shortages across Kenya

The resignations and investigation come against a backdrop of mounting fuel supply pressures linked to the ongoing conflict in Iran and the broader instability in the Middle East. Independent fuel retailers across Kenya have reported shortages as oil shipments through the Strait of Hormuz, a critical chokepoint for one-fifth of global crude and liquefied natural gas, face disruption. Kenya, which relies entirely on Middle Eastern imports, is particularly exposed. Energy consultancy CITAC estimates that 75 percent of refined fuel in East and Southern Africa originates from Gulf suppliers, reflecting the region’s vulnerability to global geopolitical shocks.

The sudden departures have sent ripples through Kenya’s energy industry, highlighting structural weaknesses in procurement oversight and transparency. The unfolding investigation could reshape public trust in how the country manages its critical fuel supply, a sector intimately tied to national economic stability. For now, the government faces the twin challenge of reassuring citizens and investors that fuel will remain available while holding accountable those responsible for the alleged distortions in the system.