{"id":137750,"date":"2026-04-15T06:02:58","date_gmt":"2026-04-15T06:02:58","guid":{"rendered":"https:\/\/chezaspin.com\/blog\/how-kenya-lost-sh3-2bn-in-abrupt-fuel-deal-cancellation\/"},"modified":"2026-04-15T06:02:58","modified_gmt":"2026-04-15T06:02:58","slug":"how-kenya-lost-sh3-2bn-in-abrupt-fuel-deal-cancellation","status":"publish","type":"post","link":"https:\/\/chezaspin.com\/blog\/how-kenya-lost-sh3-2bn-in-abrupt-fuel-deal-cancellation\/","title":{"rendered":"How Kenya Lost Sh3.2bn in Abrupt Fuel Deal Cancellation"},"content":{"rendered":"

NAIROBI,Kenya Apr 15-A fresh storm has erupted over Kenya\u2019s fuel supply crisis after Oryx Energies Kenya Ltd revealed that a multi-million shilling emergency fuel deal was abruptly cancelled by the government while shipments were already en route.<\/strong><\/p>\n

Appearing before the Senate Standing Committee on Energy, Managing Director Angeline Maangi disclosed that the firm had moved to secure fuel supplies under an urgent government request, only for the Ministry of Energy and Petroleum to pull the plug at the last minute.<\/p>\n

\u201cThe Company acted at the Government\u2019s request, under extreme market conditions, and with the sole purpose of supporting Kenya\u2019s energy security,\u201d Maangi told the committee.<\/p>\n

Documents tabled before senators show that the State Department for Petroleum issued a direct request for proposal to Oryx on March 19, seeking additional Premium Motor Spirit (PMS) amid supply fears linked to the Middle East conflict.<\/p>\n

\u201cThe invitation was communicated directly to the Company\u2019s Managing Director from the official email account of the Principal Secretary,\u201d the firm said.<\/p>\n

Oryx submitted its proposal within just two hours, confirming its capacity to supply the product.<\/p>\n

\u201cWe submitted the quotation within the required timeline and confirmed our readiness to perform under the proposed terms,\u201d Maangi said.<\/p>\n

By March 25, the ministry had approved the supply of 60,000 metric tonnes of fuel, with a further 36,000 metric tonnes greenlit two days later to shore up national reserves.<\/p>\n

However, in what is now at the centre of the Senate probe, the government cancelled the deal on March 31 \u00a0despite shipments already being in transit.<\/p>\n

\u201cThe shipment was en route for delivery when the Ministry cancelled the offer .By that time, a binding contractual arrangement had already been established through formal correspondence,\u201d Maangi said.<\/p>\n

The company told senators it has since suffered losses amounting to $25 million (about Sh3.2 billion) and is pushing for the government to honour what it terms as a binding agreement.<\/p>\n

\u201cAs of today, the company has lost USD 25 million in the failed deal,\u201d she said.<\/p>\n

The revelations triggered sharp exchanges in the committee, with senators questioning both the speed and structure of the controversial procurement.<\/p>\n

Tana River Senator Danson Mungatana pressed the firm on its decision to commit to the deal within hours.<\/p>\n

\u201cDid you talk to your lawyers or consult widely before entering into a contract within two hours?\u201d he posed.<\/p>\n

\u201cWould you be comfortable to jump into such an arrangement knowing the existence of government-to-government contracts with Gulf states?\u201d<\/p>\n

Kakamega Senator Boni Khalwale raised concerns over the financial implications of the aborted contract.<\/p>\n

\u201cThe taxpayer wants to know the consequences of the failed contract and who pays you for the loss of money?\u201d Khalwale asked.<\/p>\n

TransNzoia Senator Allan Chesang Kisang questioned the broader economic impact, saying: \u201cWe need to know the cost of missing out on the importation of these petroleum products,\u201dhe noted.<\/p>\n

Maangi defended the firm\u2019s pricing, telling senators the quoted premium of $253.94 per metric tonne reflected severe global supply disruptions.<\/p>\n

\u201cThis differential reflects prevailing market conditions characterised by acute product scarcity,\u201d she said.<\/p>\n

She cited disrupted shipping routes, reduced tanker availability and soaring insurance costs due to the Middle East crisis.<\/p>\n

\u201cRerouting around the Cape of Good Hope added up to two weeks in transit time and materially increased logistics costs,\u201d she added.<\/p>\n

The company maintained it acted in good faith and in line with established communication channels.<\/p>\n

\u201cIt is standard practice that the State Department of Petroleum communicates to oil marketers in this manner,\u201d Maangi said.<\/p>\n

She also underscored Oryx\u2019s long-standing presence in the sector, noting: \u201cIn the 39 years that the company has been in operation, it has built a reputation and is a trusted player as an oil importer.\u201d<\/p>\n

But the firm warned that the cancellation could have far-reaching consequences on future emergency responses.<\/p>\n

\u201cA framework that invites participation but fails to honour resulting commitments risks eroding the private sector\u2019s capacity to respond,\u201d the company cautioned.<\/p>","protected":false},"excerpt":{"rendered":"

NAIROBI,Kenya Apr 15-A fresh storm has erupted over Kenya\u2019s fuel supply crisis after Oryx Energies Kenya Ltd revealed that a multi-million shilling emergency fuel deal was abruptly cancelled by the government while shipments were already en route. Appearing before the Senate Standing Committee on Energy, Managing Director Angeline Maangi disclosed that the firm had moved […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-137750","post","type-post","status-publish","format-standard","hentry","category-uncategorized","entry"],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/posts\/137750","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/comments?post=137750"}],"version-history":[{"count":0,"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/posts\/137750\/revisions"}],"wp:attachment":[{"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/media?parent=137750"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/categories?post=137750"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/tags?post=137750"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}