Kenya: Storm as Senators Demand to Be Shown Sh16.5 Billion Edible Oil Before Commencing Probe

28 November 2023

Nairobi — Senate probe over the Sh16.5 billion edible oils scandal has continued to leave tongues wagging as it emerged top officials within the Ministry of Trade and Investment are still unaware of the location of the imported cooking oil.

The Senate Committee on Trade and Investment Committee was forced to adjourn prematurely until Senators are shown the location of imported cooking oil brought in by the Kenya National Trading Corporation to cushion Kenyans from high prices.

Trade and Investment Cabinet Secretary Rebecca Miano had appeared before the committee accompanied by the PSs and heads of departments in the ministry to disclose the whereabouts of the imports.

Miano was however chased after she requested the committee to shelve the matter as the KNTC Managing Director Pamela Mutua failed to appear as she was summoned by the DCI.

"The managing director was yesterday summoned by the DCI and she is still there answering to questions," Miano told the Lenku Ole Kanar led committee.

Mutua was among senior officials of the State agency who were arrested on Monday evening and spent the night in police custody.

She was today grilled at the Directorate of Criminal Investigations (DCI) over her alleged role in the Ksh.16.5 billion edible oils scandal.

Senators decried that they are being taken in circus over the matter expressing the KNTC CEO failed to physically establish if indeed the cargo came in and was indeed were stored at the warehouse during their visit in Industrial Area.

"I felt like our inquiry wasn't welcomed and everything is being done to frustrate our investigations to make sure that the matter goes undetected. If we can prosecute the oil we go for Christmas, I will not be able to sit in these meeting," said Busia Senator Okiya Omtatah.

Kiambu Senator Karungo Thangwa said the session could not continue without a physical confirmation that the oil imports were indeed in the warehouses.

"We need to see this oil, I'm sure even the Cabinet Secretary may not be sure if the imports are still in the warehouse. Let's just dismiss this meeting so that this department can take us with the seriousness that is deserved," said Thangwa.

Samburu Senator Steve Ltumbesi insisted that the matter should not be taken lightly as there might be loss of hundreds of millions of shillings through inflation of prices of imported edible oil.

"If it will force us to call the former trade minister, then I think we will have to do that because Kenyans are asking us where is the cheaper oil that you promised?" said Ltumbesi.

The Ethics and Anti-Corruption Commission (EACC) in late October formally opened investigations on the alleged embezzlement of public funds at the agency through irregular award of tenders for supply and delivery of food commodities during the financial years 2022/2023 and 2023/2024.

Document filed before the Senate indicated that KNTC single-sourced the companies contracted to import 125,000 metric tonnes of the edible oil and set higher prices as opposed to what had been agreed on initially.

President William Ruto had through his own initiative negotiated a contract with the cooking oil manufacturers on the understanding that this would bring down the cost of the 125,000 metric tonnes of edible oil which was part of a strategy to tame the high cost of basic commodities.

KNTC awarded Multi Commerce FCZ a Sh8.12 billion tender to supply vegetable oil and Shehena Company Limited to supply jerricans of edible oil at Sh1.33 billion.

Kenya Revenue Authority (KRA) used the Kenya Gazette notice number 250 to facilitate the subsequent imports. The National Treasury later issued a circular indicating the quantities of edible oils to be imported.

The consignment included 125,000 metric tonnes and jerricans, which meant that 6,875,000 20-litre jerricans were imported.

However, three Single Administrative Documents currently with the investigators each have different entries showing the discrepancies.

AllAfrica publishes around 400 reports a day from more than 100 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.