The government has launched an aggressive push to recover billions lost in a controversial fuel importation deal, signaling a major crackdown on firms implicated in the scandal that has rocked Kenya’s energy sector.
Speaking on Monday, April 6, United Democratic Alliance (UDA) Secretary General Hassan Omar confirmed that recovery proceedings targeting the importers are already underway, with the aim of shielding taxpayers from financial loss.
“We confirm that urgent recovery proceedings against the importers have commenced to ensure Kenyan taxpayers are protected from any financial exposure,” he said.
The scandal involves the importation of high-cost fuel, sold at between Ksh50 and Ksh80 per litre – significantly above the government-to-government (G2G) pricing framework. Authorities estimate that approximately Ksh3 billion was lost in the irregular deal.
To deter similar cases in future, the government is proposing punitive penalties amounting to five times the losses incurred. If implemented, this would see the implicated parties surcharged up to Ksh15 billion.
Recovered funds are expected to be redirected toward strengthening Level Six hospitals, turning the financial loss into a long-term public health investment.
The controversy has already seen the resignation and arrest of senior officials, including former Petroleum Principal Secretary Mohammed Liban, former Kenya Pipeline Company Managing Director Joe Sang, and former Energy and Petroleum Regulatory Authority Director General Daniel Kiptoo.
Despite public concern over possible fuel price hikes, Omar assured Kenyans that pump prices would remain stable, with EPRA maintaining the G2G pricing framework. He also confirmed that mandatory fuel quality tests are ongoing, with results set to be made public.