NAIROBI, Kenya Apr 15 – Narok Senator Ledama Ole Kina has alleged the existence of a powerful “fuel cabal” within Kenya’s energy sector, accusing senior officials and oil marketers of orchestrating inflated fuel import deals at the expense of taxpayers.
In a statement shared on X, the Narok Senator claimed that documents presented before lawmakers point to coordinated pricing arrangements between Oryx Energies Kenya Ltd and officials at the Ministry of Energy and Petroleum.
Ole Kina told senators he was “shocked” to discover what he described as glaring discrepancies in fuel import costs.
“I sat in the committee room… and discovered that they were all in agreement to import fuel at USD 253.94 per metric tonne, while the same government imports fuel at USD 84.00 per metric tonne,” he said.
He questioned the justification for the price difference, raising concerns over possible collusion between oil marketing companies and government officials.
“If OMCs are not taking advantage in cohorts with ministry officials, who is fooling whom?” he posed, terming the alleged scheme “an artificial get-rich-quick scam.”
The allegations come amid an ongoing Senate investigation into emergency fuel procurement deals undertaken during recent global supply disruptions linked to the Middle East crisis.
Ole Kina further claimed that one of the disputed shipments had already arrived in the country before being abruptly cancelled, raising fresh concerns over procurement processes and fuel quality standards.
Appearing before the Senate Standing Committee on Energy, Oryx Managing Director Angeline Maangi defended the company’s actions, saying it responded to a direct government request under urgent market conditions.
“The Company acted at the Government’s request… to support Kenya’s energy security,” she said.
According to documents tabled before the committee, the State Department for Petroleum issued a direct request for proposal on March 19 for additional Premium Motor Spirit (PMS), citing fears of supply disruptions.
Oryx submitted its bid within two hours and was subsequently approved to supply 96,000 metric tonnes of fuel.
However, the government cancelled the deal on March 31 while shipments were already en route—an action that has triggered sharp scrutiny from lawmakers.
Maangi told the committee the cancellation occurred despite what she described as a binding contractual arrangement, adding that the company has since incurred losses of $25 million (approximately Sh3.2 billion).
The unfolding controversy has intensified pressure on the government to explain the pricing structure, procurement process, and abrupt cancellation of the deal.
Lawmakers have raised concerns over transparency, competitiveness, and the potential financial burden on taxpayers if compensation claims are upheld.
The allegations of a fuel pricing cartel come at a time when Kenyans are already grappling with rising fuel costs and a high cost of living, further fueling public outrage over the management of the energy sector.
As the Senate probe continues, attention is now firmly on whether the claims of collusion and price manipulation will be substantiated—and whether those responsible will be held accountable.