Days after failing to appear before the House Committee on Energy despite summons, Cabinet Secretary Opiyo Wandayi has dismissed mounting calls for his resignation over the KSh12 billion substandard oil import scandal.

On Monday, the CS told lawmakers that he sees no basis for him to step aside amid ongoing investigations.

While appearing before the National Assembly Committee on Energy, CS Wandayi faced sharp questions from lawmakers on how substandard oil worth KSh12 billion was procured and pumped into the country’s storages.

This roiling scandal continues to trigger chaos across the country’s energy sector with senior government executives tendering their resignations on April 4th. Among those who resigned were Joe Sang, the former CEO of utility Kenya Pipeline Company; Daniel Kiptoo the ex-Director General of the Energy and Petroleum Regulatory Authority (EPRA), and Energy Principal Secretary Mohamed Liban. 

The trio’s resignations while in police custody on Easter Weekend continues to fuel speculations across industry. Reports show that the substandard oil contained elevated levels of oxygenates, manganese, sulphur, and benzene, contravening the limits outlined by the Kenya Bureau of Standards (KEBS).

Stakeholders are questioning the scale of the breaches that saw 60,000 metric tonnes of substandard petrol imported into the country by One Petroleum, bypassing regulatory checks. This consignment would have pushed up pump prices by at least KSh14 a litre.

When asked by lawmakers about hasty resignations of industry top bosses, CS Wandayi offered no clarity: “As to why three or so officers have resigned, I cannot say because I do not know why they resigned. What I know is that investigations are ongoing.”

However, a striking revelation by the CS highlighted the unprecedented nature of the ill-fated deal that continues to raise fears of fuel shortage in Kenya owing to the Middle East conflict. He noted that the substandard consignment marked the first oil cargo ever procured outside of the Government-to-Government (G-2-G) framework, which the country secured two years ago to guarantee fuel supply. 

“To our knowledge, and from the records, since the first cargo under G-2-G arrived in Kenya, there has been no fuel imported outside the G-2-G framework until this contentious consignment,” CS Wandayi told MPs.

While media reports have published correspondences that appear to show that his ministry was in the loop in the lead-up to securing the consignment, CS Wandayi did not state who bore responsibility approving its entry.

Fuel stocks in Kenya

With mounting anxiety and concern from the markets on fuel supplies, the CS moved to assure the public that the country’s oil stocks are stable. He disclosed that as of today, Kenya has 183,318 cubic metres of petrol and 152,750 cubic metres of diesel, enough to last us for many days. “More shipment is also on the way,” the CS explained.

Sector watchdog EPRA is expected to announce new pump prices for the April 15 to May 14th cycle tomorrow, and any significant jump in cost of fuel would drive up the cost of living.

EPRA’s acting Director General, Dr. Eng. Joseph Oketch, who accompanied the CS to the committee session, sought to temper expectations while also warning of illicit practices. 

"We cannot pre-empt what EPRA will announce tomorrow [April 14th]. Take it from me, the cost of this consignment will not be factored. We ask Kenyans to be patient and wait for tomorrow to see measures the government has taken to cushion them. We have done much to ensure fuel is enough,” noted Dr. Oketh.

Additionally, he warned, “we got intelligence that some players are hoarding fuel on anticipation of price increase.  Up to 12 show because letters have been written to oil marketers [suspected of fuel hoarding]."

Last week, EPRA announced that it is undertaking spot checks across pump stations in the country with a view to establishing steady supply and adherence to market discipline. 

[email protected]