Kenya’s energy sector is engulfed in what may be the most damaging corruption scandal of President William Ruto’s administration. Three of the country’s most senior petroleum officials — Petroleum Principal Secretary Mohamed Liban, Energy and Petroleum Regulatory Authority (EPRA) Director General Daniel Kiptoo, and Kenya Pipeline Company (KPC) Managing Director Joe Sang — resigned on April 4, 2026, just hours after their arrest by Directorate of Criminal Investigations (DCI) detectives probing an alleged Ksh 4 billion fuel importation fraud.
The resignations, swiftly accepted by the Office of the President, came after a dramatic sequence of events that saw the three officials — along with Petroleum Deputy Director Joseph Wafula — detained and grilled over their alleged roles in diverting a 60,000-metric-tonne fuel consignment to the Port of Mombasa. Investigators recovered a staggering Ksh 500 million in cash from the homes of the arrested officials, a haul that has sent shockwaves through Nairobi’s political corridors and confirmed the worst suspicions of ordinary Kenyans: that those entrusted with managing the country’s fuel supply were instead looting it.
The scheme, as outlined by government investigators, is brazen in its audacity. Senior officials within the Ministry of Energy and Petroleum allegedly manipulated national fuel stock data to create a false impression of an impending supply crisis. This manufactured panic was then used to justify emergency fuel procurement outside Kenya’s established Government-to-Government (G2G) framework — a mechanism designed to ensure transparency and fair pricing in bulk fuel purchases. The result was an irregular deal worth approximately Ksh 4 billion for a cargo that investigators say was both overpriced and failed to meet Kenya’s quality standards.
At the centre of the probe is the vessel MV Paloma, which is believed to have docked at the Port of Mombasa between March 27 and March 29, carrying a consignment originally destined for Angola. How and why this shipment was rerouted to Kenya remains a critical question for investigators. Quality assurance managers at KPC flagged the consignment for elevated sulphur levels that failed to meet regulatory standards — an anomaly that triggered internal disputes before eventually being escalated to the DCI. The fact that a quality control officer blew the whistle, reportedly against internal resistance, suggests the rot extended deep into institutional decision-making.
KPC Supply and Logistics Manager Joel Mburu is also under formal internal review as the investigation widens. Officials have warned that the alleged actions may constitute offences under the Anti-Corruption and Economic Crimes Act and the Penal Code, meaning criminal charges — not just resignations — are likely to follow.
But the political fallout is far from contained. Kakamega Senator Boni Khalwale has publicly called for the arrest and sacking of Energy Cabinet Secretary Opiyo Wandayi, arguing that as the ministry’s political head, he bears ultimate responsibility for what happened on his watch. “If he knew about the scandal, he is complicit. If he didn’t know, he must take political responsibility and resign for gross incompetence,” Khalwale declared, warning that failure by President Ruto to act would compel the National Assembly to exercise its constitutional impeachment powers.
Wandayi’s silence has been conspicuous. As of this writing, the Cabinet Secretary has not issued any public statement addressing the developments unfolding beneath him. For a politician of Wandayi’s stature — he is a senior figure in Raila Odinga’s ODM party and a key player in the broad coalition government — the scandal threatens to unravel both his ministerial career and his party’s positioning ahead of the 2027 general election. The optics are devastating: three of his direct subordinates arrested, half a billion shillings in cash recovered, and a fraudulent fuel deal that potentially cost Kenyan taxpayers billions.
This scandal arrives at a politically volatile moment. With the 2027 election cycle already heating up — former President Uhuru Kenyatta actively engaging Mt. Kenya voters, Rigathi Gachagua positioning himself as an opposition figure, and President Ruto pushing to consolidate Kenya Kwanza — any perception of unchecked corruption within the administration is politically lethal. The fuel sector is particularly sensitive; Kenyans feel every shilling of price manipulation at the pump, and the idea that officials were engineering artificial shortages to enrich themselves will provoke fury far beyond Nairobi’s political class.
President Ruto’s swift acceptance of the resignations suggests the administration understands the gravity of the situation. But accepting resignations is the easy part. What Kenyans will be watching for is whether criminal prosecutions follow, whether CS Wandayi faces consequences, and whether the broader system that allowed this scheme to flourish is meaningfully reformed. Kenya has seen too many scandals where dramatic arrests led to quiet acquittals. This time, with Ksh 500 million in cash sitting in evidence lockers and a paper trail stretching from Mombasa to Angola, the public will accept nothing less than full accountability.
