CS Wandayi Halts Payments in Ksh4.8 Billion Fuel Scandal, Orders Removal of Shipment

By Melwin Kiprop

Energy and Petroleum Cabinet Secretary Opiyo Wandayi has ordered a halt to payments and the removal of a controversial fuel consignment at the centre of a multi-billion shilling scandal, warning that its release into the market could trigger a sharp rise in fuel prices.

In a statement issued on Tuesday, Wandayi revealed that a 60,000-metric-tonne shipment of super petrol was imported into the country outside the established government-to-government (G-to-G) framework. According to the CS, the unauthorised consignment was significantly overpriced, costing Ksh198,000 per metric ton compared to Ksh140,000 under the official arrangement.

He warned that the Ksh58,000 difference per metric tonne could have pushed pump prices up by as much as Ksh14 per litre if passed on to consumers, further burdening Kenyans already grappling with the high cost of living.

Wandayi cautioned that bypassing the G-to-G system threatens the stability of Kenya’s fuel supply chain, undermining efforts to regulate prices and ensure steady supply. He emphasized that the framework has played a critical role in shielding consumers from volatile global fuel costs.

In response, the CS directed the Energy and Petroleum Regulatory Authority (EPRA) to immediately exclude the disputed shipment from the monthly pricing formula used to determine fuel costs. He also ordered a freeze on all payments linked to the consignment pending the outcome of investigations.

Further, Wandayi instructed One Petroleum Limited, the company behind the importation, to withdraw all invoices and issue credit notes. Oil marketing companies were also warned against purchasing or distributing the fuel from the flagged shipment.

The directive comes amid growing concerns over manipulation within the energy sector, with authorities seeking to prevent artificial shortages and unjustified price hikes. Wandayi reiterated the government’s commitment to protecting consumers and maintaining transparency in fuel procurement processes.

The developments follow warnings from fuel dealers that petrol prices could rise to as high as Ksh231.68 per litre in the next pricing cycle, a potential increase that would mark one of the steepest jumps in Kenya’s history.

As investigations continue, the government now faces mounting pressure to restore confidence in the fuel supply system and ensure accountability for those involved in the controversial importation.