Kenyan Newspapers, April 8: Company Calculates Loss of KSh 12b Due to Illegal Fuel Scandal

The newspaper on Wednesday, April 8, reported on various topics, including the oil import scandal that has hit the headlines recently.

The front pages of The Star and Daily Nation newspapers. Image: Screenshots from The Star and Daily Nation.Daily Nation
Source: UGC

1. Daily Nation

Energy Minister Opiyo Wandayi has again tried to clarify things about the oil importation scandal.

On Tuesday, April 7, he issued an order that resulted in One Petroleum Ltd, owned by businessman Mohamed Jaffer, losing about KSh 11.8 billion in the ongoing oil importation scandal, insisting that the importation of oil into the country was irregular.

In his statement, Wandayi ordered the company to remove 60,000 tonnes of heavy petrol from the Kenyan market, saying it was imported without following the Government to Government (G-2-G) system.

The system is used to import oil from the United Arab Emirates and Saudi Arabia.

However, One Petroleum accepted the order but claimed that it imported the oil after winning an emergency tender issued by the Ministry of Energy in March to prevent fuel shortages in the country.

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Wandayi said the cargo was bought at KSh 198,000 per ton, compared to KSh 140,000 under the G-2-G scheme, a difference that would increase the price of fuel by about KSh 14 per litre.

“These imports would increase the burden on consumers,” he said.

However, communications indicate that another company, including Oryx Petroleum, had also ordered a similar cargo of 60,000 tonnes in a similar order, while the names of the other two companies remain confidential.

The scandal has now taken an investigative turn, with officers from the Department of Criminal Investigation (DCI) questioning senior officials in the energy sector including former Kenya Pipeline managing director Joe Sang and former head of the Energy and Petroleum Authority Daniel Kiptoo.

Investigators are investigating an alleged conspiracy to import substandard fuel, with high levels of hazardous chemicals.

Wandayi also ordered the oil companies not to pay the cargo, a move that could lead to legal action due to potential losses for One Petroleum.

The scandal raises new questions about transparency in the oil sector and the risk of price hikes for consumers, as the government tries to contain the situation.