Why Kenya’s oil sector faces collapse and the threat to an ailing economy

NAKURU, Kenya, Jun 11 – A crisis is looming in the country’s oil sector over the menace of adulteration of oil products and diversion.

The Ethics and Anti-Corruption Commission (EACC) says if left unchecked, the menace poses a serious threat to the country’s economy.

Speaking during a training workshop for senior managers from Kenya Pipeline Company (KPC) in Nakuru County, key players in the sector were implicated in the manipulation of data as well as an increasing conflict of interest in allocation of oil to markets.

EACC chairperson Archbishop Eliud Wabukala said despite the critical role of the sector to the country’s economy, malpractices such as irregular award of tenders, fictitious payment and nepotism threaten its growth.

“Some of the main malpractices in this sector included adulteration of fuel and its products and diversion of fuel meant for other markets.The region relies on KPC for cost effective and safe transport of petroleum products and it’s integrity should therefore be one of the core values in this sector,” said Wabukala.

KPC and the EACC are currently working on strengthening anti-corruption initiatives in order to combat the vice.

So far, EACC has embarked on repossessing assets obtained through proceeds of graft terming the move as an effective way in fighting corruption.

Government officials who have acquired wealth illegally have been put on notice.

“We have so far recovered corruptly acquired assets worth over Sh25 billion and this is meant to prove that proceeds of crime don’t pay. We are working closely with the office of the ODPP. We have so far concluded investigations into over 1,000 cases and have secured 169 convictions,” he said.

KPC managing Director Macharia Irungu acknowledged the work done by EACC saying that training its managers will no doubt help in upholding integrity in the institution.