Editor's Review

KPA has issued a clarification on how petroleum imports are handled at the Port of Mombasa, as scrutiny intensifies over the Ksh4.8 billion fuel import scandal.

The Kenya Ports Authority (KPA) has issued a clarification on how petroleum imports are handled at the Port of Mombasa, as scrutiny intensifies over the Ksh4.8 billion fuel import scandal.

In a letter to the Senate Energy Committee, KPA Managing Director William Ruto said the tanker, MT Paloma, reached the port’s outer anchorage on March 27 at 2:30 a.m., transporting 60,200.813 metric tonnes of Premium Motor Spirit (PMS). 

The cargo details had been formally declared in the manifest submitted by Sturrock Shipping (Kenya) Limited.

"The pilot boarded the vessel at 1750 hours upon lodgment of the manifest, and the vessel was brought alongside KOT II at berth No. 1 at 2042 hours," he stated.

KPA noted that its responsibility ends once a vessel is securely docked, noting that cargo discharge operations are handled by the Kenya Pipeline Company (KPC).

The authority distanced itself from any downstream handling or decisions involving petroleum products.

"Upon berthing of tanker vessels at KOT II, cargo discharge and all associated operations are undertaken by KPC. Accordingly, after berthing of vessels, KPA is not privy to all subsequent operations or actions that may be taken by the relevant Government Agencies," the authority explained.

KPA confirmed that offloading of the cargo was finalized on March 30 at 12:12 p.m., after which the vessel cleared all port dues and departed later that evening at 7:20 p.m.

Despite the procedural explanation, senators reviewing the case raised serious concerns about fuel quality and oversight within the supply chain.

Nominated Senator Veronica Maina cautioned against allowing substandard fuel into circulation, and questioned monitoring mechanisms within KPC.

"We should stop substandard products from passing through the Kenya Pipeline system. What system does Kenya Pipeline have to detect substandard products in the system? Why should a Minister of Trade waive standards of petroleum products?" she posed.

File image of Nominated Senator Veronica Maina

Elgeyo Marakwet Senator William Kisang also pressed for clarity on expected fuel imports in the near term.

"How many cargos are we expecting in the next 14 days as compared to last year such a time?" he asked.

In response, KPA General Manager Moses Taiwu assured lawmakers that supply remains stable.

"We have sufficient oil cargo ships docking in Mombasa in the next 14 days so we don’t have to face fuel shortages," he responded.

KPA maintained that port operations remain smooth and efficient, revealing that 19 tanker vessels were processed between March 1 and April 12. 

These shipments included PMS, Automotive Gas Oil (AGO), and Jet A-1 fuel.

Among the vessels handled during that period were MT Tortuga, MT Wisteria, MT Lyric Magnolia, MT Lunaria, and MT Constantinos, each carrying cargo volumes ranging from tens of thousands to over 100,000 metric tonnes.

The authority credited improved efficiency to the Kipevu Oil Terminal II (KOT II), which became operational in August 2022. The facility includes three berths, allowing multiple tankers to be handled simultaneously and significantly reducing delays.

"This addressed delays and resultant demurrage costs previously attributed to the Authority. Tanker vessels now berth on arrival subject to fulfilling prerequisites set by other government agencies," Taiwu said.

KPA reiterated that it does not oversee petroleum supply, licensing, or quality assurance, stressing that these roles are assigned to other government bodies.

"Management of petroleum cargo supply, licensing and quality checks, as well as the country’s stock management, is not within the mandate of the Authority," Taiwu explained.

Meanwhile, Narok Senator Ledama Ole Kina has alleged a major fuel import scam involving officials from the Ministry of Energy.

In a statement on Wednesday, April 15, Ole Kina said he reviewed correspondence between Oryx Energy Ltd and officials from the Ministry of Energy, which he claims exposes the alleged scheme.

"I sat in the committee room yesterday reading emails between Oryx Energy Ltd and the Ministry of Energy officials, including the Cabinet Secretary, and I was shocked to discover that they were all in agreement to import fuel at USD 253.94 per MT - while the same government they serve imports fuel at USD 84.00 per MT," he said.

Ole Kina went on to question the role of oil marketing companies (OMCs) in the alleged irregularities, suggesting that the pricing discrepancies point to deliberate manipulation rather than market forces.

He further alleged that attempts to question or halt such deals are undermined by last-minute changes that still result in costly imports.

"If OMCs are not taking advantage in cohorts with ministry officials, who is fooling whom? This is an artificial get-rich-quick scam orchestrated by a fuel cabal.

"We are not stupid - only for the deal to be cancelled at the last minute when a shipment of substandard fuel imported by One Petroleum Limited arrived and was offloaded, costing Kenyans the equivalent of USD 198,855 per MT - still USD 114 more per MT than the government’s own G-to-G rate," he added.