Nairobi, Kenya — A deepening fuel supply scandal has triggered a leadership overhaul across the East African energy sector, with top officials in Kenya and Tanzania losing their positions as governments grapple with claims of economic sabotage and rising costs.
In Kenya, several high-ranking officials have exited their roles amid an investigation into a government-to-government fuel supply deal. Mohamed Liban, principal secretary for petroleum; Joe Sang, managing director of the Kenya Pipeline Company; and Daniel Kiptoo Bargoria, director general of the Energy and Petroleum Regulatory Authority, have all left office.
Investigators are probing allegations that officials distorted fuel stock data to manufacture an artificial shortage. Authorities claim an emergency shipment of substandard fuel was procured outside of legal frameworks at inflated prices. The Kenya Pipeline Company board confirmed that Pius Mwendwa, general manager for finance, has taken over as interim managing director while state agencies continue their inquiry.
The regional instability extended to Tanzania, where President Samia Suluhu Hassan dismissed James Mwainyekule, director general of the Energy and Water Utilities Regulatory Authority. The move followed a 30 percent spike in fuel prices that saw petrol surpass 3,800 Tanzanian shillings per liter in Dar es Salaam. While regulators cited global oil price increases and Middle East conflict as causes, the dismissal suggests a shift toward stricter regulatory accountability.
The upheaval has raised concerns in Uganda, which relies on the Kenyan corridor and the Port of Mombasa for the majority of its petroleum imports. Analysts say the scandal highlights vulnerabilities in the regional supply chain, where governance failures in one country can directly impact the energy security and pricing of its neighbors.
Ugandan officials are reportedly monitoring the situation as the crisis tests the reliability of regional trade agreements and may accelerate efforts to diversify import routes.
