Ex-Petroleum PS Mohamed Liban, Former EPRA Boss Daniel Kiptoo Released on Bail in Ksh4.8 Billion Fuel Scandal

Former Petroleum Principal Secretary Mohamed Liban, former Kenya Pipeline Company (KPC) Managing Director Joe Sang, and former Energy and Petroleum Regulatory Authority (EPRA) Director General Daniel Kiptoo have been released from police custody after spending several days under investigation over the controversial fuel importation scandal.

The three former senior officials were released on police bail on Monday, April 6, as investigations continue. Their release came ahead of a possible court appearance, although authorities have not yet made it clear whether formal charges will eventually be filed against them.

The case continues to attract major public attention because of the huge financial implications linked to the alleged importation of sub-standard fuel.

Speaking to the media on Monday, their lawyers strongly defended the three, insisting that they had committed no offence.

According to the legal team, the former officials were only implementing recommendations made by the National Security Council Committee (NSCC) on March 9.

The lawyers maintained that every step taken by their clients was guided by official government advice and not personal interests.

Documents reviewed by Newshub.co.ke reportedly show that the committee had recommended the sourcing of “emergency” fuel from alternative suppliers.

The move was allegedly meant to protect the country from possible supply disruptions and price shocks arising from the escalating conflict in the Middle East.

This explanation is now expected to form a key part of the defence as investigators seek to establish how the fuel deal was approved.

The investigation has now widened, with at least 20 more individuals presenting themselves before officers from the Directorate of Criminal Investigations (DCI) to record statements.

Among those questioned is a senior Managing General from one of Kenya’s major petroleum firms, whose company has now emerged as central to the unfolding scandal.

The executive is considered a crucial person of interest, especially after reports indicated that his company was involved in the shipment of about 69 million litres of sub-standard fuel into the Kenyan market.

Investigators are now trying to determine how the shipment was cleared and whether proper quality checks were ignored or deliberately bypassed.

The arrest of the three former officials during the Easter period had triggered public concern, prompting several government agencies to issue statements aimed at calming the situation.

Institutions including KPC, EPRA, and the DCI separately assured Kenyans that the matter was being handled thoroughly and that no public funds or strategic resources would be allowed to go to waste.

Following Daniel Kiptoo’s exit from EPRA, the authority has already moved to restore stability by appointing Joseph Aketch as the new Director General.

He is expected to be sworn in during the course of the week. However, the other affected institutions have not yet announced permanent replacements for the officials who resigned as the scandal continues to unfold.

The estimated Ksh4.8 billion loss is linked to the emergency fuel cargo that was reportedly procured outside the existing Government-to-Government (G2G) oil import arrangement with Gulf nations.

Kenya’s current G2G fuel supply deal with Saudi Arabia and other Gulf partners is expected to remain in force until later this year, making the decision to source fuel outside the framework a major issue in the investigations.

The Ministry of Energy has also confirmed that the questionable fuel consignment may have caused a price variance of Ksh43.4 per litre when compared to prices under the established G2G agreement.

This difference has raised serious concerns over whether taxpayers and consumers may have been exposed to avoidable financial losses.

As pressure mounts, the government, through the ruling United Democratic Alliance (UDA), has proposed severe financial penalties against the importers linked to the sub-standard fuel.

The party is now pushing for a Ksh15 billion fine, a figure meant to protect taxpayers from the projected losses and send a strong warning to players in the petroleum sector.

UDA Secretary General Hassan Omar said the proposed punishment could amount to five times the estimated losses suffered, showing the government’s intention to impose harsh sanctions on anyone found responsible.

The recommendation signals that beyond criminal investigations, the scandal may also lead to major financial consequences for the companies and individuals involved.

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