Wandayi rejects costly fuel cargo as shortages bite
National
By
Graham Kajilwa and Antony Gitonga
| Apr 08, 2026
The government has directed One Petroleum, the company behind the importation of the 60,000 metric tonnes of fuel, away from the government to government (G-2-G) arrangement, to exit the cargo out of the country as soon as possible.
Energy Cabinet Secretary Opiyo Wandayi has also asked oil marketing companies that had been invoiced for the same cargo by One Petroleum not to honour the payments.
They are also not to uplift the product.
In a statement dated April 7, Wandayi likewise ordered One Petroleum to immediately withdraw all invoices issued and raise credit notes.
This is as the Energy & Petroleum Regulatory Authority (EPRA) is under instructions from the CS to exclude the said cargo from monthly computation of petroleum product costs.
The 60,000 metric tonne cargo of super petrol is at the centre of fuel importation scandal that has rocked the energy sector which eventually led to the resignations of Petroleum Principal Secretary Mohamed Liban, Kenya Pipeline Company (KPC) Joe Sang and EPRA Director-General Daniel Kiptoo. The importation was informed by the ongoing Iran -US/Israel war that has made it difficult for cargo ships to find safe passages through the Strait of Hormuz that is controlled by Iran.
Wandayi said the landing cost of the cargo would have led to an increase of Sh14 a litre in pump prices.
“This consignment is priced at Sh198,000 per metric tonne compared to Sh140,000 per metric tonne under the G-2-G arrangement, an increase of Sh58,000 per metric tonne, which would result in an approximate rise of Sh14 in pump prices on this consignment alone,” said Wandayi.
One Petroleum, in a statement, acknowledged the instructions from the government.
“Following consultations with the government, One Petroleum Ltd confirms that it has forthwith taken steps to ensure that the petroleum cargo that was brought in on March 27, 2026 via MT Paloma does not enter the Kenyan market,” the statement reads.
It further explained that the importation was a result of a bid awarded to four companies, among them One Petroleum, to bring in emergency fuel as directed by the Ministry of Energy.
However, as claimed by Chief of Staff and Head of Public Service Felix Koskei, there have been claims that fuel stock figures have been manipulated to facilitate importation of an emergency cargo.
Since April 2023, petroleum products have been imported into the country through the G-2-G arrangement President William Ruto entered with United Arab Emirates and Saudi Arabia-based firms at the height of foreign exchange pressures.
The arrangement provides Kenya with a six-month deferred payment plan offering relief on the shilling against the US dollar.
Wandayi, in his statement, vowed to deal with individuals behind the scheme.
“The government will remain vigilant to ensure that no individual, company or stakeholder engages in artificial shortages or unjustified price increases,” he said. “The public will continue to be updated on fuel prices in the usual manner.”
Meanwhile, numerous motorists and motorcycle operators across the country were left stranded as fuel shortages were witnessed at the petrol stations. In Nairobi, some motorists spent hours moving from station to station in search of the commodity. Matatu owners had to pull their vehicles from various routes as they too could not find diesel.
In Isiolo, many were stranded as their search did not bear fruit.
In Naivasha, motorists were compelled to withdraw their vehicles and bikes from the road due to an acute fuel shortage. There were concerns that the shortage could halt key operations in flower farms, hotels and the geothermal-rich area as the country felt the full impact of the Middle East crisis.
By midday, nearly all petrol stations had run out of fuel, with residents resorting to using motorcycle operators and jerricans to seek the elusive commodity.