Kenya fuel executives resign amid probe into alleged supply irregularities
President William Ruto has accepted the resignation of the executives and a formal investigation has been launched into the alleged irregularities.
Senior executives in Kenya's energy sector have resigned following accusations of manipulating fuel stock data and procuring an emergency cargo of substandard quality at inflated prices, President William Ruto's office said on Saturday.
Ruto accepted the resignation of Mohamed Liban, principal secretary for petroleum, while the Kenya Pipeline Company confirmed that its managing director, Joe Sang, had also stepped down, the statement said.
The Energy and Petroleum Regulatory Authority's director general, Daniel Kiptoo Bargoria, has also resigned, according to the statement.
A formal investigation has been launched into alleged irregularities in Kenya's petroleum supply chain, it said.
Emergency importation
The government said the manipulated data was used to justify the emergency importation of fuel, despite standing contracts with Saudi Aramco Trading Fujairah, Abu Dhabi's ADNOC Global Trading Ltd, and Emirates National Oil Company Singapore Ltd., all of which are meeting their contractual obligations.
It alleged that the emergency shipment was overpriced, of substandard quality, and procured at rates significantly higher than those agreed under existing deals.
"This appears to have been done to exploit rising global prices and public anxiety, thereby creating a false impression of an impending supply shortfall," the statement read.
The investigations have been launched amid the fuel supply concerns linked to the Iran conflict, which has affected global energy markets.
Administrative action has been taken against additional officials and arrests made by investigative agencies, the statement said.
It did not identify those who had been arrested. No one has been charged.