A fresh controversy has emerged in Kenya’s petroleum sector after revelations that a disputed fuel shipment valued at Sh11.86 billion continues to circulate in the market despite a government order to withdraw it, raising concerns over enforcement gaps and possible manipulation within the supply chain.
According to The Standard, the fuel consignment delivered by MT Paloma at the Port of Mombasa has become the centre of an investigation over pricing, timing and alleged market entry irregularities.
The shipment, which was initially flagged by authorities, has since triggered a wider probe into how it was cleared and distributed.
Energy Cabinet Secretary Opiyo Wandayi had reportedly directed that the consignment be withdrawn from circulation following public concern over its quality and pricing structure.
However, despite the directive, the fuel was not removed from the system.
Instead, One Petroleum, a key player in the transaction, is said to have issued invoices amounting to billions of shillings to oil marketers for the same cargo, effectively keeping the disputed fuel within commercial circulation.
The development has raised difficult questions about regulatory enforcement and accountability in the energy sector.
Industry observers are now questioning whether the withdrawal order was practically unenforceable from the outset, or whether influential interests within the petroleum trade obstructed its implementation.
At the centre of the dispute is the Sh11.86 billion consignment, which remains under scrutiny as investigators examine its pricing structure and entry conditions into the Kenyan market.
The case is expected to intensify pressure on energy regulators as stakeholders call for transparency in fuel importation and distribution processes, amid growing concerns over consumer protection and market integrity in the sector.