The Kenyan government has ordered an immediate freeze on all payments related to a disputed 60,000-metric-tonne petrol consignment, warning oil companies not to lift the product from the flagged shipment.
Energy Cabinet Secretary Opiyo Wandayi directed the Energy and Petroleum Regulatory Authority (EPRA) to remove the consignment from the monthly fuel cost calculations. He also ordered One Petroleum Ltd, the company that imported the fuel, to withdraw all invoices already issued and raise credit notes instead.
Wandayi explained that the shipment was brought into the country without following the rules set under the government-to-government (G-to-G) fuel supply framework. He warned that bypassing this system could interfere with market stability and hurt progress made in keeping fuel prices under control.
According to the CS, the price difference for this consignment stood at Ksh58,000 per metric tonne. If that extra cost had been passed on to consumers, it would have led to a sharp increase in pump prices.
Wandayi stressed that sticking to the G-to-G agreement is important to protect consumers from unnecessary price hikes and to ensure the country’s fuel supply chain remains stable. He added that any move outside this framework puts the entire system at risk a system that has so far helped secure both supply and pricing stability.
The CS also warned all Oil Marketing Companies in Kenya not to pay the invoices linked to the consignment or attempt to collect the fuel. He said investigations into the matter are ongoing.