Fuel drama: Govt betrayal hits One Petroleum, Oryx deals hard
National
By
Brian Ngugi
| May 16, 2026
One Petroleum Ltd did everything the ministry of energy asked.
It responded to an emergency fuel tender, secured a 60,000-metric-tonne petrol cargo, and delivered it to Mombasa on March 27, 2026.
The company even has a letter from the Principal Secretary for Energy, dated March 25, confirming their shipment.
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Twelve days later, the government ordered it to pull the fuel out of the country.
"We were one of four bidders that successfully responded to an emergency request issued by the Kenya Ministry of Energy and Petroleum," One Petroleum said in a statement on April 7. "Following consultations with the Government, One Petroleum Limited confirms that it has forthwith taken steps to ensure that the petroleum cargo that was brought in on 27th March, 2026 via MT Paloma does not enter the Kenyan market."
Industry sources say approximately 20 per cent of the cargo had already been offloaded to local oil marketers based on invoices the government itself had authorised. Those invoices were later ordered withdrawn, leaving a trail of confused buyers and disputed liabilities.
One Petroleum was not alone. Oryx Energies Kenya Limited, a Swiss-owned firm, had also won an emergency contract for 60,000 metric tonnes of petrol, with a delivery window of April 5-7, 2026. The Ministry's letter of award, dated March 25, was signed by the same former Principal Secretary, Mohamed Liban, who authorised One Petroleum's cargo.
But Oryx's vessel never docked. As the political backlash mounted, the government quietly signalled that the Oryx cargo would not be accepted. The vessel was forced to seek alternative markets, sources said, incurring significant demurrage and trading losses.
Unlike One Petroleum – which said it complied with the government's request to withdraw Oryx has chosen to fight The Standard has learned.
The company has filed a claim at the International Court of Justice (ICJ) seeking $60 million (approximately Sh7.8 billion) in damages, according to multiple sources familiar with the matter.
"Oryx Energies Kenya Limited was awarded a legitimate contract to supply emergency fuel stocks during a national supply crisis," a source close to the company told Standard. "The government's subsequent cancellation and its public statements questioning the integrity of the transaction have caused irreparable commercial harm."
The public whiplash began on April 7, when Cabinet Secretary Opiyo Wandayi held a press conference declaring the One Petroleum cargo "unauthorised" and imported outside the Government-to-Government (G-to-G) framework. He ordered One Petroleum to exit the Kenyan market, directed oil marketers not to pay invoices or uplift product, and instructed EPRA to exclude the consignment from monthly price computations.
The flip-flopping by the ministry continued when a tw0-month waiver on fuel standards was announced on April 30 by Trade CS Lee Kinyanjui to the specifications used by the country last year and which the One petroleum shipment met.
What Wandayi did not mention was that his own Principal Secretary had signed the authorisation letters – for both One Petroleum and Oryx – just 13 days earlier. The letters, reviewed by Standard, bear the official ministry stamp and the signature of Mohamed Liban, who has since resigned.
Liban's March 25 letter to One Petroleum stated: "Following your proposal to supply Premium Motor Spirit for contingency stocks, we hereby confirm... The quality of the PMS to be delivered is as per Kenya Bureau of Standards specifications."
For Oryx, the stakes are now international. The ICJ case could take years, but an adverse ruling would expose Kenya to significant compensation payments on top of the reputational damage, legal experts say.
The Ministry of Energy and Petroleum did not respond to requests for comment on the status of the Oryx ICJ case.