Fresh details show sh500 m recovered in fuel probe disappears from police custody

A file image of Mohamed Liban, Joe sang and Daniel Kiptoo

A fresh twist has emerged in the ongoing fuel importation scandal after more than Ksh500 million allegedly recovered from key suspects mysteriously disappeared from police custody.

According to sources familiar with the investigation, the cash was seized during dramatic raids conducted by detectives targeting senior officials linked to the controversial petroleum deal.

The arrests saw former Energy and Petroleum Regulatory Authority (EPRA) Director General Daniel Kiptoo Bargoria, Kenya Pipeline Company (KPC) Managing Director Joe Sang, Petroleum Principal Secretary Mohamed Liban, and Deputy Director of Petroleum Joseph Wafula taken into custody.

Detectives are said to have recovered at least Ksh100 million at Joe Sang’s residence, with additional sums collected from other suspects, pushing the total haul beyond Ksh500 million.

However, in a shocking development, insiders now claim that the entire amount has since vanished under unclear circumstances, raising serious questions about the handling of evidence within law enforcement agencies.

Sources alleged that a senior politician demanded the cash be delivered to him, with detectives reportedly forced to comply without issuing any official receipt or inventory documentation.

The claims, which could not be independently verified, have intensified scrutiny over the integrity of the investigation and triggered fears of possible interference at the highest levels.

The suspects have now spent their third night in custody after failing to secure release on police bond, even as reports indicate that individuals close to them are seeking government protection ahead of their court appearance scheduled for Tuesday.

Meanwhile, Head of Public Service Felix Koskei is said to have personally overseen the booking of the suspects, underlining the gravity of the case that has shaken the country’s energy sector.

The scandal centres on the alleged irregular importation of Premium Motor Spirit (PMS) under the government-to-government (G-to-G) framework, with authorities suspecting that substandard fuel with dangerously high sulphur levels entered the Kenyan market.

Amid mounting pressure, President William Ruto on Saturday formally received the resignations of Liban, Sang, and Kiptoo as investigations intensified.

In a statement, the Directorate of Criminal Investigations (DCI) confirmed that it has recorded statements from key witnesses and persons of interest, including senior government officials and executives from oil firms linked to the deal.

The agency added that it is working with international partners under the Mutual Legal Assistance programme to establish the full extent of the alleged irregularities.

“Statements have been recorded from possible witnesses and several persons of interest. Investigations are ongoing, and those found culpable will be dealt with in accordance with the law,” the DCI stated.

The agency further clarified that the recent resignations do not shield any of the suspects from prosecution.

“Resignation from office does not in any way exonerate or absolve suspects from criminal culpability. They are urged to cooperate fully with investigators,” the statement added.

The DCI assured the public that the probe is being handled with professionalism and urgency, noting that the case file will be forwarded to the Office of the Director of Public Prosecutions upon completion.

At the same time, disciplinary action has been initiated against other officials linked to the matter, as the government moves to contain what is shaping up to be one of the most explosive corruption scandals in the country’s energy sector.