Fresh Details Expose How Energy Bosses Bypassed G-to-G Oil Deal

A Collage photo of Daniel Kiptoo and a ship at Mombasa Port

Fresh details have emerged over a controversial multi-billion-shilling oil importation deal that culminated in the dramatic arrest of senior officials in Kenya’s energy sector.

Police on Friday morning 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.

According to investigators, detectives from the Directorate of Criminal Investigations (DCI) recovered more than Ksh100 million in cash during coordinated 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 later rerouted to the Port of Mombasa under unclear circumstances.

The vessel, identified as MV Paloma, docked at the port carrying more than 60,000 metric tonnes of fuel in what detectives believe bypassed Kenya’s government-to-government oil importation framework.

Sources familiar with the investigation indicate that the fuel originated from Saudi oil giant Saudi Aramco, before being sold to another international energy firm and eventually redirected through a local Kenyan importer.

According to reports, the consignment was offloaded at the Port of Mombasa between March 27 and March 29, 2026.

Detectives suspect the diversion allowed the fuel to enter the Kenyan market outside official procurement channels, raising concerns over transparency and accountability within the sector.

Preliminary findings further indicate that the consignment may have been overpriced by more than Ksh4 billion. Investigators warn that a second anticipated shipment could push potential losses to nearly Ksh8 billion.

Authorities are also examining whether the deal exploited a temporary fuel shortage triggered by disruptions in global supply chains.

Earlier reports pointed to delays involving a shipment from Emirates National Oil Company, linked to disruptions in the Strait of Hormuz, which created short-term supply gaps.

Investigators now believe the disruption may have been used to justify an emergency import that did not follow established procedures.

Separately, the consignment has raised quality concerns, with reports indicating elevated sulphur levels that fall short of Kenya’s regulatory standards.

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

The four officials were interrogated for over seven hours at the DCI headquarters along Kiambu Road in Nairobi, as detectives continue to piece together evidence in the widening probe.