Three suspects have been arrested in Kisumu in a suspected fuel syphoning syndicate at a private property in Tom Mboya estate.
Kisumu Central Deputy County Commissioner (DCC) Boseck Lang'at said security officers closed in on the suspects following a tip-off from the public.
The suspects were nabbed inside the compound which is secured by a perimeter wall and gate where the alleged fuel syphoning from tracks ferrying the commodity was being conducted.
Boseck said the suspects were allegedly syphoning fuel from loaded tracks and storing it in tanks from where it is loaded to other tracks for distribution and sale.
During the operation, he said, police seized over 2,000 litres of diesel, 40 litres of petrol and 20 litres of kerosene from the premises.
Police have initiated investigations into petrol stations where fuel is sold, pointing to potential fuel adulteration.
"We don't have the right information on where this fuel is transported to but we suspect it is being sold to licensed petrol stations," he said.
Police said a manhunt for the main suspect has been launched.
Lang'at urged the public to volunteer information to aid in his arrest.
The racket, he said was not only denying the government revenue but also posed a danger to motor vehicles and members of the public.
He cautioned motorists against fueling at such illegal outlets to stay out of harm's way.