Fresh Details Emerge on EPRA Boss Arrest, Ksh100 Million Recovered

A photo collage of EPRA Boss Daniel Kiptoo and the fuel consignment in Mombasa Port

Fresh details have emerged over a controversial multi-billion-shilling fuel importation deal that has led to the arrest of senior officials in Kenya’s energy sector.

Police on Friday arrested Energy and Petroleum Regulatory Authority (EPRA) Director General Daniel Kiptoo, Kenya Pipeline Company Managing Director Joe Sang, Petroleum Principal Secretary Mohamed Liban, and Deputy Director of Petroleum Joseph Wafula.

Detectives from the Directorate of Criminal Investigations (DCI) reportedly recovered more than Ksh100 million in cash during raids at the homes of the four suspects.

At the centre of the probe is the suspected diversion of a fuel consignment that was initially destined for Angola but was rerouted to the Port of Mombasa under unclear circumstances.

The vessel, identified as MV Paloma, docked in Mombasa carrying over 60,000 metric tonnes of fuel, in a shipment investigators believe may have bypassed Kenya’s government-to-government oil importation framework.

Sources indicate the fuel originated from Saudi oil giant Saudi Aramco before being sold to another international firm and later redirected through a Kenyan-based petroleum importer.

Reports further show that the consignment was offloaded at the Port of Mombasa between March 27 and March 29, 2026, raising questions over how it entered the local supply chain.

Detectives suspect the diversion allowed the fuel to be introduced into the Kenyan market outside official procurement channels, sparking concerns over transparency in the sector.

Preliminary investigations suggest the shipment may have been overpriced by more than Ksh4 billion, with fears that a second consignment could push potential losses to nearly Ksh8 billion.

The DCI is also investigating whether the deal was orchestrated to exploit fuel shortages caused by recent supply disruptions.

Earlier reports had cited delays involving a shipment from Emirates National Oil Company due to instability in the Strait of Hormuz, which temporarily disrupted supply.

Investigators now believe the disruptions may have been used to justify an emergency import that did not follow standard oil procurement procedures.

Further concerns have been raised over the quality of the fuel, with reports indicating elevated sulphur levels that failed to meet Kenya’s regulatory standards.

The anomaly was reportedly flagged by a Kenya Pipeline Company quality assurance manager, triggering internal disputes before the matter was escalated to investigators.

The four officials were later questioned for more than seven hours at DCI headquarters along Kiambu Road in Nairobi as investigations continue.