High-ranking officials from Kenya's energy sector have been arrested in connection with an alleged fuel shortage and the distribution of adulterated fuel.

• Energy Principal Secretary Mohammed Liban, Kenya Pipeline Company (KPC) Managing Director Joe Sang, and Epra Director-General Daniel Kiptoo were among those detained by the Directorate of Criminal Investigations (DCI).
• The arrests are part of a probe into suspected interference within the petroleum supply chain, with a focus on a fuel consignment flagged for quality concerns due to elevated sulfur levels.
• The investigation into the potential disruption of fuel supplies comes amid existing public concerns over the government-to-government oil import arrangements.

Treasury Cabinet Secretary John Mbadi has warned of impending high fuel prices in Kenya starting in May, citing global oil market volatility linked to the Middle East conflict.

• Anticipated price increases will reflect higher import costs for May and June due to disrupted global energy supply chains, including the closure of the Strait of Hormuz.
• The Treasury Cabinet Secretary reassured that the government-to-government oil supply arrangement would cushion consumers, and the economy remains resilient with growth projected at 5.3 percent in 2026 and 2027.
• An inter-ministerial team is monitoring the situation, and the government is considering interventions such as tax adjustments and encouraging e-mobility and diversified import sources.

The Kenyan government is set to review Value Added Tax (VAT) on petroleum products and allocate Sh17 billion from the fuel stabilization fund to mitigate a potential sharp increase in fuel pump prices.

• The government plans to spend Sh17 billion from the Fuel Stabilisation Fund.
• The Treasury Cabinet Secretary John Mbadi announced the planned review of the 16% VAT on petroleum products.
• Fuel prices could increase by at least Sh20 due to higher premiums on imported fuel outside the Government-to-Government deal.

The Kenya Revenue Authority (KRA) has postponed scheduled maintenance of its Integrated Customs Management System (iCMS) due to ongoing congestion at the Port of Mombasa. This decision comes after traders and shipping companies expressed concerns about further disruptions to cargo flow.

• The iCMS maintenance was initially planned for April 4-6, 2026, but has been rescheduled to April 12, 2026.
• The KRA is the organization involved, deferring the system shutdown.
• This is the second time in recent months that iCMS maintenance has been postponed due to significant disruptions, following a similar event in February that caused massive gridlock at the port.