Kenya moves to end oil inspection charges row

The government has summoned the Kenya Bureau of Standards and oil importers to a meeting on Monday next week to sort out the controversy over a multi-million oil inspection tender.

This emerged even as the Industrialisation permanent secretary John Lonyangapuo admitted that the process of identifying the Indian firm — Geo Chem — was not above board.

“We don’t want Kenyans to be held at ransom by a dispute between oil importers and Kebs. I have said the process has to be stopped and written a letter to the two parties to come here on Monday to sort out the matter once and for all,” he said.

The PS said the status quo would hold until new guidelines are provided.

The PS spoke at his office at Telposta Towers in Nairobi when he received motorcycles from Japan International Co-operation Agency representative Yoshiyuki Takahashi for the one-village-one product initiative.

Oil firms have warned that the prices of petroleum products would be increased as a result of the inspection fee.

On Sunday, the PS hinted at a possible shake-up at Kebs as the tender row heightened.

Yesterday, Mr Lonyangapuo said his ministry has been observing the process since last year when the dispute arose after some parties claimed the tender was not handled properly.

Go through

“We have been watching because the tender did not go through National Standards Board and was done purely by Kebs management,” he said.

He, however, said it was the intention of the government to have imported oil products inspected to determine their quality and quantity.

The PS said the government had for a long time been relying on data provided by inspection agencies contracted by oil importers, adding that it was not possible to authenticate the information.

The ministry, he said, was waiting for official communication from the Public Procurement Oversight Authority since July.

Mr Lonyangapuo said the tender floated in April raised disputes with some parties crying foul.

“The process continued and in July, we wanted PPOA to certify if the tender was proper or not. Indications are that PPOA noted the process was not correct and we have been waiting for the document and everything has gone quiet,” he said.

The PS said the government intended to take charge of inspection of imported oil and would not negotiate with oil importers or any party on the matter.