DCI Recovers Ksh100M in Cash From Homes of Top Petroleum Officials After Arrest in Fuel Scandal

Police officers on Friday morning arrested several senior government officials in the energy sector over a major fuel scandal.

Those arrested include Petroleum Principal Secretary Mohamed Liban, Joe Sang, Daniel Kiptoo, and Joseph Wafula.

Detectives from the Directorate of Criminal Investigations (DCI) raided their homes and reportedly found more than Ksh100 million in cash.

The arrests are linked to a suspicious fuel shipment that was originally meant for Angola but was instead brought into Kenya through unclear means.

The fuel was transported by a ship known as MV Paloma, which arrived at the Port of Mombasa carrying over 60,000 metric tonnes of fuel.

Investigators believe the shipment did not follow Kenya’s official government-to-government fuel import system, raising serious concerns about how it entered the country.

Reports indicate that the fuel was initially supplied by Saudi Aramco before being sold to another international company. It was later allegedly redirected to Kenya through a local importer.

The fuel was offloaded in Mombasa between March 27 and March 29, 2026.

Detectives suspect the deal may have allowed the fuel to be sold in Kenya outside the normal procurement process. This has raised questions about transparency and possible corruption in the energy sector.

Early investigations suggest the fuel could have been overpriced by more than Ksh4 billion. Authorities fear that if another shipment had gone through, the total loss to taxpayers could have reached nearly Ksh8 billion.

The DCI is also investigating whether the deal took advantage of a fuel shortage at the time.

Earlier, there were delays involving a shipment from Emirates National Oil Company due to disruptions in the Strait of Hormuz. Detectives now suspect this situation may have been used as an excuse to bring in the questionable fuel shipment.

There are also concerns about the quality of the fuel. Reports indicate it may have had high sulphur levels that do not meet Kenya’s standards.

The issue was first noticed by a quality assurance officer at Kenya Pipeline Company, leading to internal disagreements before the case was handed over to the DCI.

The four officials were questioned for more than seven hours at the DCI headquarters along Kiambu Road in Nairobi as investigations continue.