Kenya’s fuel crisis has come under intense scrutiny after a Senate investigation named billionaire Mohamed Jaffer and senior state officials in an alleged scheme to manipulate fuel supply and profit from inflated imports in March 2026. The probe, presented before the Senate Energy Committee, centres on claims that the fuel crisis was artificially created through altered stock data, enabling emergency procurement of overpriced and contaminated fuel.
The case has drawn national attention due to its scale and implications for energy security, consumer costs, and governance. Authorities have launched investigations, with arrests and resignations already recorded among key officials linked to the petroleum supply chain.
Fuel Crisis timeline and alleged manipulation
The events leading to the fuel crisis began on March 9, when a National Security Council Committee meeting addressed disruptions caused by the closure of the Strait of Hormuz. Officials directed the Ministry of Energy to diversify fuel sources beyond the Gulf region.
However, by March 18, internal memos warned of a looming shortage. According to testimony presented by Narok Senator Ledama Ole Kina, Kenya’s fuel reserves at the time did not justify such concerns. The country required approximately 180,000 metric tonnes of petrol monthly, with ongoing imports and additional shipments expected within weeks.
The senator alleged that the fuel crisis was manufactured through manipulation of inventory data. This, he said, created the appearance of scarcity and justified emergency procurement outside established government-to-government supply agreements.
Fuel Crisis procurement and pricing discrepancies
On March 25, Petroleum Principal Secretary Mohamed Liban authorised One Petroleum Limited and Oryx Energies to import fuel outside the standard G2G framework. Two days later, the tanker MT Paloma docked at Mombasa with approximately 68,000 metric tonnes of petrol.
Investigators have questioned how a company without a track record in importing Premium Motor Spirit could deliver such a cargo within 48 hours. Evidence suggests the shipment had been pre-positioned in the United Arab Emirates before the emergency was declared.
Pricing differences further deepened concerns. While the G2G rate stood at Sh140,000 per tonne, the imported cargo was priced at Sh198,000 per tonne. This resulted in an estimated Sh3.4 billion difference in a single transaction, effectively transferred to the importer through higher consumer costs.
Separately, internal correspondence cited in the probe indicated even larger disparities in other supply arrangements, raising concerns about long-term financial losses to the country.
Contaminated fuel and public health risks
The fuel at the centre of the crisis was not only expensive but also chemically non-compliant. Government correspondence acknowledged that the imported petrol contained elevated levels of manganese, sulphur, and benzene.
Benzene is a known carcinogen, while high sulphur and manganese levels can damage engines and increase harmful emissions. Officials granted a temporary waiver to allow the fuel into the market, citing emergency conditions.
Motorists across Kenya unknowingly used the fuel over the Easter period, with early reports of engine damage emerging before investigations intensified.
Key figures in the Fuel Crisis investigation
The Senate probe identified three central figures in the alleged scheme: Joel Mburu of the Kenya Pipeline Company, Joseph Wafula of the Ministry of Energy, and businessman Mohamed Jaffer.
Authorities described Mburu as a key figure due to his role in managing fuel inventory data and import coordination. Wafula, who oversaw technical approvals, was also implicated in procurement decisions. Both officials were arrested and questioned as investigations expanded.
Jaffer, chairman of the MJ Group, leads a business empire with significant influence in Kenya’s petroleum logistics sector. His company, One Petroleum Limited, was among the beneficiaries of the emergency import authorisation.
Corporate structure and market influence
One Petroleum’s corporate structure and financial capacity have also drawn attention. The company is linked to offshore entities and holds substantial financing arrangements, indicating its significant presence in the fuel market.
Jaffer’s business interests extend across key infrastructure at the Port of Mombasa, including fuel storage and logistics operations. Analysts note that such positioning gives private operators considerable influence over supply chains, particularly during emergencies.
Political response and resignations
The fuel crisis triggered swift political fallout. On April 4, several senior officials, including the Petroleum Principal Secretary, the managing director of Kenya Pipeline Company, and the head of the energy regulator, resigned following their arrest.
However, Energy Cabinet Secretary Opiyo Wandayi has declined to step down, stating that there are no legal grounds for his resignation while investigations are ongoing. Critics argue that the scale of the crisis raises questions about oversight at the highest levels.
Legal challenges have also emerged, with petitions filed in court seeking accountability and transparency in fuel procurement processes.
Economic impact of the Fuel Crisis
The fuel crisis has had direct implications for consumers and the broader economy. Petrol prices in Nairobi have exceeded Sh206 per litre, placing pressure on transport costs and inflation.
Although the government has indicated that the disputed imports will not influence official pricing calculations, market pressures remain evident. Analysts warn that prolonged uncertainty in fuel supply could affect economic stability and investor confidence.
Outlook and ongoing investigations
Investigations into the fuel crisis remain active, with authorities examining procurement records, financial flows, and regulatory decisions. The Directorate of Criminal Investigations continues to gather evidence, while parliamentary oversight bodies push for accountability.
The case has highlighted vulnerabilities in Kenya’s fuel supply chain, including reliance on emergency procurement and limited transparency in pricing mechanisms. It has also raised broader questions about governance and the role of private actors in critical national infrastructure.
As the inquiry progresses, its findings are expected to shape future policy on fuel imports and energy security. The outcome could also determine legal consequences for those implicated in the alleged scheme.
The MT Paloma has since left Kenyan waters, but the investigation into the fuel crisis continues, with significant implications for public trust, regulatory reform, and the cost of living in the country.
