Illicit trade in petroleum products is a serious national security threat, Internal Security and National Administration PS Dr Raymond Omollo said Monday.
He called for new measures to be established to curb the trade.
Omollo warned that illegal petroleum facilities, dumping, adulteration and siphoning of petroleum products along the highways were emerging security threats.
The PS was speaking during the State of the Petroleum and Oil Industry briefing for the first quarter of 2024 organized by the Petroleum Institute of East Africa (PIEA).
The theme of the briefing was;
“Combating Illicit Trade in the Petroleum Sector as a Key Catalyst to the Government’s Bottom-Up Economic Transformation Agenda,” he said.
“The sector continues to harbour rogue business people while some elements within the law and enforcement agencies have been compromised thus the need to enhance intelligence-led enforcement, harden prosecution measures, and capacity building across enforcement agencies.”
He said there is a need to protect critical energy infrastructure such as petroleum pipelines and storage facilities from natural disasters, terrorist and cyber-attacks, or sabotage for overall national safety and security.
“Access to reliable, quality petroleum products is deeply intertwined with national security as it influences security operations both in terms of fuel for vehicles and aircraft as well as power for police stations and communication systems, especially in far-flung and hard-to-reach areas not yet connected to the national grid,” he said.
Omollo said the inability to trace the movement of petroleum products presents serious safety concerns to consumers and the public at large.
He said there was an urgent need to deploy advanced technology for monitoring and surveillance of the supply chain to help in the early detection of illicit activities.
“Rogue business people are ever changing their tactics and now leveraging technology to extend their territorial reach. We should not be left behind,” the PS said.
He also urged the petroleum sector to take advantage of the National Government Administrative Officers (NGAOs) as coordinators of regular inspections and surveillance exercises at the county levels owing to their reach.
Omollo also asked that the legal frameworks to impose stricter penalties on those involved in the illicit trade should also be updated and strengthened.
"This should also include government officials found to have approved illegal facilities or turned a blind eye through corruption to unlicensed facilities and vehicles transporting petroleum products without valid permits," he said.
He also proposed educating the public about the dangers of using illegally sourced LPG and petroleum products can help reduce demand for such products.
The PS proposed the training of law enforcement and regulatory personnel on the latest techniques for detecting and preventing illicit trade as well as involving the petroleum industry players in developing solutions and reporting suspicious activities can lead to a more comprehensive approach to tackling the issue.
He revealed a dedicated Energy Police Unit (EPU) was already established to provide security to critical petroleum infrastructure and a review can be made to expand the Unit to co-opt all other enforcement.
Omollo said the fight against the illicit trade requires a multi-faceted approach involving collaboration between government agencies, industry players, the private sector and the public.
The PS said the government is supporting legitimate trade and movement of petroleum and its products, not restraining it.
The petroleum industry growth in Kenya, which has seen an increase in the number of outlets, storage and refilling facilities, has brought with it numerous challenges with the biggest one being the unauthorized refilling sites of petroleum products, specifically LPG.
These sites normally refill cylinders belonging to licensed brand owners illegally with a case in point being the fire tragedy that occurred in the residential area of Mradi Area, Embakasi that claimed ten lives and left scores injured.
President William Ruto had also warned of rogue business people dealing in Liquefied Petroleum Gas (LPG) and other petroleum products.
In March last year, the Ministry of Interior together with the Ministry of Energy and Petroleum in liaison with the Energy and Petroleum Regulatory Authority (EPRA), the EPU, and the DCI, embarked on a Rapid Result Initiative (RRI) on rogue LPG dealers and petroleum businesses.
The RRI aimed to ensure compliance with licensing conditions at LPG and petroleum storage and filling plants and enforce safety measures to minimize the risk of accidents.
A nationwide registration of all LPG and petroleum businesses was conducted to enhance management and regulation.
As a result, a total of 17,958 LPG and 6,188 petroleum facilities were registered.
The Head of investigations compliance at the PIEA Clive Mutiso said for the enforcement to be effective, the police should come on board.