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Kenya Pipeline Oil Spill Scandal

Kenyans have unwittingly been paying billions of shillings to cover up for theft of fuel at Kenya Pipeline Company in a scam that could have run for years.

The Nation is today revealing that the stolen fuel is accounted for as spillage and that, when insurers refuse to pay for it, the bill is passed on to the consumers via the Energy Regulatory Commission.

As a result, Kenyans have been financing a shadowy syndicate at KPC, until last month, when oil companies said “enough is enough” and refused to have the cost of 11 million missing litres footed by consumers.

SPILLAGE

KPC had told the oil marketing companies that more than 7.2 million litres were lost through spillage and another 4.4 million litres stolen at Koru, near Kisumu.

At best, this is a riveting fairy tale; at worst, an audacious lie

At KM391, an obscure pipeline post nine kilometres outside Konza along Mombasa Road, KPC claims there was an oil spill on March 2, 2017, and that the company lost 224,000 litres. The Nation went to KM391 and found no evidence of such a spill.

KPC has also told the oil companies that use the pipeline that this year at KM392 and KM395, inside Lisa Ranch in Makueni — owned by former Head of Civil Service and Secretary to the Cabinet Philip Mbithi — it lost 1.97 million litres in yet another spill.

But the Nation was told by the Lisa Ranch farm manager, Mr Moses Parsaoti, that there was no such spill this year, yet KPC has been pushing insurance companies to pay and the ERC to pass the bill to wananchi.

MULTI-BILLION SHILLING SCHEME

It is not clear how long this fuel theft racket has been going on, but what is certain is that it could turn out to be a daring multi-billion-shilling scheme.

As a result, a row has emerged between KPC and all the major oil companies over the whereabouts of 11.646 million litres of fuel, worth over Sh1 billion, which the company claims spilt in the fields or was stolen in the last two years.

Suspecting foul play, 10 leading oil marketers wrote a joint letter on October 26, 2018, and informed KPC that they want to bring in their own technical experts from abroad to check the accuracy of stock statements issued by the corporation and get to the bottom of what is turning out to be bogus records of loss.

TWO OPTIONS

There are only two options on the table: either the insurance companies pay for the loss, or the bill is passed to the consumer by the ERC.

KPC has no fuel of its own and holds stock in its system on behalf of oil marketers.

Sources within the State corporation told us that the industry has refused to absorb the loss and the insurers are reluctant to commit themselves. That has left the management of KPC in a quandary as oil marketers demand their oil … or the truth.

Although the KPC managing director Joe Sang was not committal on who will pick up the tab in case the insurance companies do not pay for the “loss”, we now have evidence that oil marketing companies refused to have the loss passed on to consumers via the ERC, which has often been used to sanitise the losses.

INSURERS

Mr Sang told us he was waiting for the insurers’ decision: “The insurers appointed their own loss adjustors,” he said.

“They went to the spillage site to ascertain whether the amount recorded as lost was correct. At the moment, we are in the final stages of negotiation.”

The falling-out between KPC and the oil marketing companies happened on August 23 at the Serena Hotel in Nairobi, where they refused to accept the Sh1 billion loss. Minute 4 of the meeting indicates that the oil marketing companies refused to pay and resolved that the losses should neither be passed on to them nor to consumers.

It all started on July 5, 2018, when Mr Sang wrote a letter to Supplycor Kenya Limited, the independent legal entity incorporated by the oil-marketing companies in Kenya to coordinate activities along the fuel supply chain, notifying them that in the last two years a total of 11.646 million litres of fuel got lost due to “vandalism and spillages on the main line from Mombasa to Nairobi”.

COVERED BY CIC

In his letter, Mr Sang said that “these spillages are covered by CIC Company Insurance under the Industrial All Risks policy”, and that “the company expects the above losses to be compensated by insurance to the fullest extent possible and any balances not remedied shall be recovered from the industry”. But the CiC Group chief executive Tom Gitoho differed with Mr Sang, saying the company can only pay for “loss that meets the terms of our policy.”

Mr Gitoho said that after every incident reported, they “normally engage experts” to verify.

Mr Sang, while acknowledging oil marketers have demanded a forensic audit, said the company is ready for the audit, which industry experts say will reveal the “darkest secrets of KPC”.

“I don’t think it is a forensic audit per se; all they want is to confirm their stocks within KPC,” Mr Sang said. “We have told them they are welcome and we have nothing to hide.”

FORENSIC AUDIT

The ERC director-general Robert Oimeke has also written to Mr Sang urging KPC to liaise with marketers “for a forensic audit of the product loss”.

It is the first time that oil marketers are demanding a forensic audit after years of complaints that insiders have been fiddling with the system to record false losses which are then passed to the insurers or the mwananchi.

“This will, for the first time, allow Kenyans to have an independent audit of the rot within the organisation. Everyone is scared of the latest move by oil marketers,” says a source privy to the new demand by oil firms.

The demand letter, also copied to Petroleum and Mining Cabinet Secretary John Munyes, is signed by managing directors Joe Muganda (Vivo Energy), Goke Aluko (Total Kenya), David Ohana (KenolKobil) and Macharia Irungu (Gapco Kenya).

Others are Mr Duncan Murashiki (OilLibya Kenya), Mr Paul Limo (Gulf Energy), Mr Anthony Munyasya (Galana Oil), Mr Abdirizak Ahmed (Hass Petroleum), Mr Christian Callede (Oryx Energies) and Mr Hassen Zalgaonker (Engen).

The 10 directors have told Mr Sang that they would like to carry out the forensic audit within next month.

TERMS OF REFERENCE

In their terms of reference, they say they want to validate the controls around physical stock movement, but the bottom line is that they want to know what happens to their product once it leaves the ship in Mombasa.

The second issue they want to verify is the procedure used to allocate fuel and the metering of the product.

“If I pump a million litres from Mombasa, I expect a million litres is Kisumu,” a CEO of one of the oil marketing companies told the Nation.

The other most critical issue is the handling of the gain-loss.

“KPC is notorious for only declaring loss and not gains,” says an engineer privy to the KPC network.

Insiders say the demand for a forensic audit has caught KPC management by surprise.

“This audit will not only expose the scam of the oil price formula, but also the scandal of the 0.25 per cent provision that caters for any losses,” said a source close to the management.

FIDDLING WITH SYSTEM

Multiple sources have revealed to us that insiders within KPC have been fiddling with the system to record false losses, which are legally covered by the 0.25 per cent provision, and that, every month, fuel worth Sh250 million is sold out to some petrol dealers without raising any alarm.

Industry sources told the Nation that the insurance company demanded to see the police investigation report and argued that it is not possible to lose fuel worth Sh1 billion without causing an environmental crisis.

“This is equivalent to 291 tankers of 40,000 litres. KPC cannot show where the spillage occurred,” said our source.

A document sent to the oil marketers says that between March and June 2017, KPC lost 4.49 million litres of fuel at Koru after siphoning equipment was connected to an underground pipeline and fuel piped to a nearby petrol station.

ILLEGAL CONNECTION

In a statement Mr Sang had sent to newsrooms, he said the leakage had been reported on June 16, 2017 after KPC officials discovered an illegal connection with a network of pipes leading to a petrol station labelled Hess Energy Kenya some 100 metres away.

“We have a case in court which is ongoing,” said Ms Gloria Khafafa, the KPC Secretary.

While KPC has said that 1.5 million litres flowed into Prof Mbithi’s dam in the Kapiti plains last year, we could not independently verify the amount. Some workers who oversaw the clean-up say that all the water was pumped out into three tankers of 40,000 litres each, meaning only 120,000 litres could have spilt here.

The Lisa Ranch farm manager told us: “Haikuwa mafuta mingi. (It wasn’t that much). They cleaned up the dam last year and it is now in use.”

In total, KPC claims to have lost 4.8 million litres between KM391 and KM397, which is inside Prof Mbithi’s Lisa Ranch, in the last two years.

“Why, then, haven’t you repaired this section?” we asked Mr Sang.

“We have given the proposal to the Board to replace the entire pipe in Mbithi’s farm,” he said.

NGONG FOREST

KPC had told the marketers that there was a major spill in Ngong Forest in April and May this year, and that 1.2 million litres of jet fuel, kerosene and petrol were lost. KPC wanted insurance to pay for this too.

But the Cabinet Secretary for Environment, Mr Keriako Tobiko, said: “I am hearing it for the first time. There is nobody who knows about it. I have even talked to Kenya Forest Service and they don’t seem to know of such a spill.”

Mr Tobiko said that had it happened, it would have “caused an environmental crisis” at the forest. “We would even have made arrests,” he said.

A note from Kenya Forest Service says that in May this year KPC claimed that the line inside the forest had been drilled.

REPAIRS

“We visited the site and found them carrying out repairs on the destroyed pipeline. We never saw any spillage. On Wednesday (last week) there was another allegation of destruction of the pipeline. The forester was not informed and they felled some trees within the pipeline way leave.”

With no evidence of spillage of 1.2 million litres in Ngong Forest, the KFS says that “the destruction and theft of fuel could be an inside job by company employees”.

The forensic audit request comes at a time that KPC is in focus following revelations that water was passed through the pipeline system and accounted for as fuel.

Our informant now says that the water came from Line 5 during the commissioning of the pipeline. It is not clear why the water was not drained as per the procedure, but instead it was allowed to flow up to Kisumu, where 14 trucks that had gone to pick up oil were loaded with water.

It has not been explained why water was allowed to be part of the 94-million-litre line fill for Line 5.

 

The 47 Counties of Kenya

The counties of Kenya are geographical governance areas create by the 2010 Constitution of Kenya as the units of devolved government.

There are 47 counties whose size and boundaries are based on the pre 1992 Districts of Kenya The counties’ names are set out in the First Schedule of the Constitution of Kenya.

Establishment

County governments were established in 47 counties (largely), after the scheduled general elections in August 2013.

List of counties

Under the new constitution, Kenya is now divided into 47 counties for administrative purposes. They are grouped below according to the former region of which they were part, with their areas and populations as of the 2009 census:

Code County Region Area (km2) Population
(2009 Census)
HQ

Coast

1 Mombasa (County) Coast 212.5 939,370 Mombasa (City)
2 Kwale Coast 8,270.3 649,931 Kwale
3 Kilifi Coast 12,245.9 1,109,735 Kilifi
4 Tana River Coast 35,375.8 240,075 Hola
5 Lamu Coast 6,497.7 101,539 Lamu
6 Taita–Taveta Coast 17,083.9 284,657 Mwatate
1 Mombasa (County) Coast 212.5 939,370 Mombasa (City)
1 Mombasa (County) Coast 212.5 939,370 Mombasa (City)
7 Garissa North Eastern 45,720.2 623,060 Garissa
8 Wajir North Eastern 55,840.6 661,941 Wajir
9 Mandera North Eastern 25,797.7 1,025,756 Mandera

Eastern

10 Marsabit Eastern 66,923.1 291,166 Marsabit
11 Isiolo Eastern 25,336.1 143,294 Isiolo
12 Meru Eastern 6,930.1 1,356,301 Meru
13 Tharaka-Nithi Eastern 2,409.5 365,330 Kathwana
14 Embu Eastern 2,555.9 516,212 Embu
15 Kitui Eastern 24,385.1 1,012,709 Kitui
16 Machakos Eastern 5,952.9 1,098,584 Machakos
17 Makueni Eastern 8,008.9 884,527 Wote

Central

18 Nyandarua Central 3,107.7 596,268 Ol Kalou
19 Nyeri Central 2,361.0 693,558 Nyeri
20 Kirinyaga Central 1,205.4 528,054 Kerugoya / Kutus
21 Murang’a Central 2,325.8 942,581 Murang’a
22 Kiambu Central 2,449.2 1,623,282 Kiambu

Rift Valley

23 Turkana Rift Valley 71,597.8 855,399 Lodwar
24 West Pokot Rift Valley 8,418.2 512,690 Kapenguria
25 Samburu Rift Valley 20,182.5 223,947 Maralal
26 Trans-Nzoia Rift Valley 2,469.9 818,757 Kitale
27 Uasin Gishu Rift Valley 2,955.3 894,179 Eldoret
28 Elgeyo-Marakwet Rift Valley 3,049.7 369,998 Iten
29 Nandi Rift Valley 2,884.5 752,965 Kapsabet
30 Baringo Rift Valley 11,075.3 555,561 Kabarnet
31 Laikipia Rift Valley 8,696.1 399,227 Nanyuki
32 Nakuru Rift Valley 7,509.5 1,603,325 Nakuru
33 Narok Rift Valley 17,921.2 850,920 Narok
34 Kajiado Rift Valley 21,292.7 687,312 Kajiado
35 Kericho Rift Valley 2,454.5 752,396 Kericho
36 Bomet Rift Valley 1,997.9 730,129 Bomet

Western

37 Kakamega Western 3,033.8 1,660,651 Kakamega
38 Vihiga Western 531.3 554,622 Vihiga
39 Bungoma Western 2,206.9 1,375,063 Bungoma
40 Busia Western 1,628.4 743,946 Busia

Nyanza

41 Siaya Nyanza 2,496.1 842,304 Siaya
42 Kisumu Nyanza 2,009.5 968,909 Kisumu(City)
43 Homa Bay Nyanza 3,154.7 963,794 Homa Bay
44 Migori Nyanza 2,586.4 917,170 Migori
45 Kisii Nyanza 1,317.9 1,152,282 Kisii
46 Nyamira Nyanza 912.5 598,252 Nyamira
47 Nairobi (County) Nairobi (Province) 694.9 3,138,369 Nairobi (City

 

The 8 Provinces of Kenya

Before the enactment of the 2010 Constitution, Kenya’s administrative framework consisted of eight provinces: Central, Coast, Eastern, Nairobi, North Eastern, Nyanza, Rift Valley, and Western. Each province had a provincial commissioner (PC), appointed directly by the president. This appointment consolidated significant power at the national level. As a result, the PC oversaw provincial administration and ensured effective implementation of government policies.

Districts

Within each province, districts served as the primary administrative units. Initially, Kenya had 46 districts, excluding Nairobi. Each district had a District Commissioner (DC) who played a crucial role. The DC managed local governance, law enforcement, and the coordination of government services at the district level. Furthermore, the administrative divisions extended further. Each district is subdivided into divisions, managed by Division Officers (DO). This structure continued downward, breaking divisions into 2,427 locations and then into 6,612 sub-locations. This extensive framework showed the need for localised governance and hence the need for a new constitution

The 2010 Constitution

The constitution promulgated in the year 2010 allowed for better administrative oversight and public service delivery, tailored to Kenya’s diverse population. The 2010 Constitution initiated a restructuring process. This aimed to enhance decentralisation and promote local governance. It is hoped to put the people closer to decision making.

List of Provinces

  1. Central
  2. Coast
  3. Eastern
  4. Nairobi
  5. North Eastern
  6. Nyanza
  7. Rift Valley
  8. Western

Table of 47 Districts

 

Coast

1 Mombasa Coast 212.5 939,370 Mombasa (City)
2 Kwale Coast 8,270.3 649,931 Kwale
3 Kilifi Coast 12,245.9 1,109,735 Kilifi
4 Tana River Coast 35,375.8 240,075 Hola
5 Lamu Coast 6,497.7 101,539 Lamu
6 Taita-Taveta Coast 17,083.9 284,657 Voi

North Eastern

7 Garissa North Eastern 45,720.2 623,060 Garissa
8 Wajir North Eastern 55,840.6 661,941 Wajir
9 Mandera North Eastern 25,797.7 1,025,756 Mandera

Eastern

10 Marsabit Eastern 66,923.1 291,166 Marsabit
11 Isiolo Eastern 25,336.1 143,294 Isiolo
12 Meru Eastern 5,127.1 1,356,301 Meru
13 Tharaka-Nithi Eastern 2,409.5 365,330 Chuka
14 Embu Eastern 2,555.9 516,212 Embu
15 Kitui Eastern 24,385.1 1,012,709 Kitui
16 Machakos Eastern 5,952.9 1,098,584 Machakos
17 Makueni Eastern 8,008.9 884,527 Wote

Central

18 Nyandarua Central 3,107.7 596,268 Ol Kalou
19 Nyeri Central 2,361.0 693,558 Nyeri
20 Kirinyaga Central 1,205.4 528,054 Kerugoya / Kutus
21 Murang’a Central 2,325.8 942,581 Murang’a
22 Kiambu Central 2,449.2 1,623,282 Kiambu
23 Turkana Rift Valley 71,597.8 855,399 Lodwar

Rift Valley

24 West Pokot Rift Valley 8,418.2 512,690 Kapenguria
25 Samburu Rift Valley 20,182.5 223,947 Maralal
26 Trans Nzoia Rift Valley 2,469.9 818,757 Kitale
27 Uasin Gishu Rift Valley 2,955.3 894,179 Eldoret
28 Elgeyo-Marakwet Rift Valley 3,049.7 369,998 Iten
29 Nandi Rift Valley 2,884.5 752,965 Kapsabet
30 Baringo Rift Valley 11,075.3 555,561 Kabarnet
31 Laikipia Rift Valley 8,696.1 399,227 Rumuruti
32 Nakuru Rift Valley 7,509.5 1,603,325 Nakuru
33 Narok Rift Valley 17,921.2 850,920 Narok
34 Kajiado Rift Valley 21,292.7 687,312 Kajiado
35 Kericho Rift Valley 2,454.5 752,396 Kericho
36 Bomet Rift Valley 1,997.9 730,129 Bomet

Western

37 Kakamega Western 3,033.8 1,660,651 Kakamega
38 Vihiga Western 531.3 554,622 Vihiga
39 Bungoma Western 2,206.9 1,375,063 Bungoma
40 Busia Western 1,628.4 743,946 Busia
41 Siaya Nyanza 2,496.1 842,304 Siaya

Nyanza

42 Kisumu Nyanza 2,009.5 968,909 Kisumu
43 Homa Bay Nyanza 3,154.7 963,794 Homa Bay
44 Migori Nyanza 2,586.4 917,170 Migori
45 Kisii Nyanza 1,317.9 1,152,282 Kisii
46 Nyamira Nyanza 912.5 598,252 Nyamira
47 Nairobi Nairobi 694.9 3,138,369 Nairobi (City)

IEBC tender Scandal

The independent ectoral and and Boundaries Commission went flat out award contracts to certain firms, against all legal and regulatory challenges, to the loss of the taxpayer. IEBC also bought some items at three times the market rate. Even then the paid for materials that were delivered Ieng a.fret the 2017 elecfion ~d ended. Besides Safran which enjoyed inexplicable privilege, IEBC – against myriad court cases and petitions to the procurement regulatory authority – went flat, out to ensure Al Ghurair Printing and PUblisbing LLC, a DUbitl,based compaJWwhith-the Opposition linked to the Jubilee candidate, printed and delivered ballot papers. “Engagement of Al Ghurair was wrought with litigation and the commission position was manifest all through in the defence of the company. In fact, IEBC didn’t provide room for alternative. It was fixated on this company;’ says an insider. A South African company in­ terested in the contract had its offer in dead water. Ren-Form CC, proposed to print and deliver presidential ballot papers in less than a fortnight, if contracted. “For delivery to (Jomo Ken­ yatta International Airport) by not later than August 2, 2017 provided production starts by July 21;’ Jean-Pierre du Sart, its sales director wt ote back to IEBC on July 14, 2017. Presidential papers The presidential papers for the General Election arrived on August 1, 2017. Implicitly, IEBC wasn’t time-strapped as it claimed to justify the contract award to Al Ghurair. The offer followed a plenary resolution that an alternative interJ;:).atio~ i:lom,pany ‘De identi­ fied. to procure the ballmS’ in line with a court judgment that almost disrupted IEBC ‘s plan to award Al · Ghurair. The Court annulled the contract on the basis that IEBC failed to conduct the statutory public participation. Instructively, Ren Form CC isn’t a run-of-the-mill company; it has supplied ballots in 22 African countries, including Zambia on three occasions before losing out to Al Ghurair in the August 2016 elections. Thus, it was plainly fallacious for the IEBC to claim that it was time-strapped and that alternative suppliers lacked the technical capability. As it turned out, IEBC reached out to Ren Form CC as a matter of procedure. Notably, Al Ghurair printed an extra 1.2 million (instead of the 196,115 agreed at the Plenary) presidential ballots in contro- ‘theft was versial circumstances, a matter that further complicated the al­ ready strained relations between Chebukati and Chiloba. On August 1, 2017 -just a week to election – Chebukati asked Chiloba to explain “who gave (him) authority to print excess of 1.2 million instead of 196,115 ballot papers (1 per cent of the total requisition). The 1 per cent was to cater for spoilt ballots and “adverse circumstances “as well as reduce the risk of mismanagement of ballot papers”. Inhis respease, Chiloba a~teed that plenary had resolred that, in­ deed, 1 per cent extra ballots were to be prin~ed but the,ml:li1ber yta$ to be “rounded off to the nearest 50”. How IEBC resolved this isn’t known, for the matter appeared to have ended with Chiloba’s response. However, according to the Auditor General, “verification undertaken in 35 sampled coun­ ties across the country there were falsification of records on issued ballot papers maintained at IEBC warehouse in Nairobi compared with actual receipts in the field re­ sulting in a variance of 2,534,904 ballot papers which have not been accounted for”. The Al Ghurair contract was signed just days after IEBC’s then head of procurement Lawy Aura was sent packing “With immediate effect” .for de.clining to give a favourable opinion on the proposed award to Ghurair, according to sources. At the end, the contract for printing of ballot papers went through open tender, restricted tender then direct procurement. Al Ghurair survived this bizarre process. Apart from the controver­ sy-strewn contracts for KIEMS and ballot papers, almost all other financial deals had a tint of fraud. The acquisition of data bundles can only pass for a spending binge. IEBC acquired Sh127.6 million worth of data bundles (149,640GB or 149TB) from Safaricom, Telkom and Airtel. Yet when the Auditor General analysed Internet use on the SIM cards, only 605.3GB of bundles worth Sh515,269 had been used – a mere 0-4 per cent of the actjlli.<tition. 1t’s :incemprebensible that IEBC didn’t enter into a postpaid ar­ rangement with the telcos. Either elements in the secretariat were out to make a fast kill or an extrav­ agant IEBC failed to pre-quantify the amount of data required before issuing the contract. Con­ sequently, Sh127.08 million went to waste or wasl’trlsapprdplliat.ed. But more confoi:mdirig is a case where IEBC cloned contracts – a situation that resulted in the loss of billions of shillings. The work was replicated, given different titles and then awarded separately yet the goods and ser­ vices involved could have been performed by a single supplier. Perhaps IEBC would argue that it sought to spread risks. But in real sense, the Commission did this to benefit multiple vendors, ‘theft was versial circumstances, a matter that further complicated the al­ ready strained relations between Chebukati and Chiloba. On August 1, 2017 -just a week to election – Chebukati asked Chiloba to explain “who gave (him) authority to print excess of 1.2 million instead of 196,115 ballot papers (1 per cent of the total requisition). The 1 per cent was to cater for spoilt ballots and “adverse circumstances “as well as reduce the risk of mismanagement of ballot papers”. Inhis respease, Chiloba a~teed that plenary had resolred that, in­ deed, 1 per cent extra ballots were to be prin~ed but the,ml:li1ber yta$ to be “rounded off to the nearest 50”. How IEBC resolved this isn’t known, for the matter appeared to have ended with Chiloba’s response. However, according to the Auditor General, “verification undertaken in 35 sampled coun­ ties across the country there were falsification of records on issued ballot papers maintained at IEBC warehouse in Nairobi compared with actual receipts in the field re­ sulting in a variance of 2,534,904 ballot papers which have not been accounted for”. The Al Ghurair contract was signed just days after IEBC’s then head of procurement Lawy Aura was sent packing “With immediate effect” .for de.clining to give a favourable opinion on the proposed award to Ghurair, according to sources. At the end, the contract for printing of ballot papers went through open tender, restricted tender then direct procurement. Al Ghurair survived this bizarre process. Apart from the controver­ sy-strewn contracts for KIEMS and ballot papers, almost all other financial deals had a tint of fraud. The acquisition of data bundles can only pass for a spending binge. IEBC acquired Sh127.6 million worth of data bundles (149,640GB or 149TB) from Safaricom, Telkom and Airtel. Yet when the Auditor General analysed Internet use on the SIM cards, only 605.3GB of bundles worth Sh515,269 had been used – a mere 0-4 per cent of the actjlli.<tition. 1t’s :incemprebensible that IEBC didn’t enter into a postpaid ar­ rangement with the telcos. Either elements in the secretariat were out to make a fast kill or an extrav­ agant IEBC failed to pre-quantify the amount of data required before issuing the contract. Con­ sequently, Sh127.08 million went to waste or wasl’trlsapprdplliat.ed. But more confoi:mdirig is a case where IEBC cloned contracts – a situation that resulted in the loss of billions of shillings. The work was replicated, given different titles and then awarded separately yet the goods and ser­ vices involved could have been performed by a single supplier. Perhaps IEBC would argue that it sought to spread risks. But in real sense, the Commission did this to benefit multiple vendors, of Oracle database and security solution, which also comprised the review and assessment of the election technology, was awarded to Oracle Technology Systems (Kenya) Ltd via direct procure­ ment. It was controversial. First, Oracle itself reportedly drew the terms of reference (ToRs). Second, there was no contract between the Commission and this vendor. Instead, there were signed ordering documents. Third, the KPMG audit of the voter register had already identi­ fied the inherent security lapses in the IEBC technology and had suggested solutions. Inflated cost Fourth, the Commission’s ICT department had requisitioned pur­ chase of Oracle database solutions and licences at Sh8o million but it was awarded for Sh273 million. Yet, despite the inflated cost, Oracle partially delivered – it conducted one training instead of six. Database Vault, Real Ap­ plication Cluster (that enables sharing of resources in form of cloud architecture) and training were “not complete”, according to audits. IEBC contracted Africa Neuro­ tech Systems Ltd to supply. Install, implement, and commis ion and support its primary and secondary data centre equipment. It was paid Sh249.3 million against contract budget of Sh130 million. But ac­ cording to the Auditor General, the Commission “paid the vendor before testing and commissioning the equipment”. The data centre wasn’t ready at the time of August Election. Neurotech Systems Ltd is owned by Dan Kinyua Njuguna. A multimillion-shilling company with a presence in five African countries, it is intriguingly clas­ sified by the Public Procurement Oversight Authority (PPOA) among “disadvantaged” SME companies – those earmarked for Affirmative Action. Despite non-compliance, IEBC still engaged Neurotech – through direct procurement – to supply and deliver storage expansion for the converged infrastructure, at a cost of Sh165.7 million. Sh165.7 million was paid against a user requisition of Sh124 million. The equipment was delivered on January 9, 2018 – well after the FPE. In the end, IEBC paid Neu- rotech Sh415 million for facilities never used during the two elections. As regards Telkom, it wasn’t among those pre-qualified for the tender (co-location services for data centre and disaster recovery site). However, in unclear terms, IEBC’s evaluation committee recommended it be awarded the contract, which was inexplicably overvalued by Sh4.92 million. Once it became apparent that these companies had defaulted on their contracts, IEBC and Safran went into panic mode. The French company wrote to the Commission to be allowed to use Japan’s Nippon Telegraph and Telephone Corpo­ ration (NTT) cloud services. The Commissioner would later accept the offer, even without a contract between the two, in a letter dated July 28, 2017. Notably, the country went into the election without a backup server. IEBC didn’t have any data recov­ ery infrastructure. And this partly explains why it couldn’t respond to Nasa’s demand to access the server. Nonetheless, IT experts question why IEBC dealt with NTT through Safran Identity yet the Japanese company has local representation – Dimension Data (which oper­ ates in Kenya as Dimension Data Kenya, Internet Solutions Kenya and Plessey Kenya). “The Commission needs to jus­ tify contracting process for cloud services while at the same time in­ curs Sh1,002,813,667.97 on similar services that were never utilised;’ says the Auditor Generai. Our investigations reveal that IEBC awarded co:p,t:rac:t for aloud services despite an advisory by the Communication Authority of Kenya against the use of private servers. The Authority, in response to the commission’s proposal to use a private cloud server to supplement its primary and secondary disaster recovery sites, warned that sensitive data couldn’t be placed in private hands. Intriguingly, the cost for cloud services during FPE was Sh50.7 Million more than during the Gen­ eral Elections. On June 20, 2017, the then IT chief Chris Msando presented a paper on the transmissiQn_of results for the August elections in which he indicated that some polling stations were out of the 3G and 4G network coverage required for KEMS transmission of results. An analysis found 11,115 stations report­ edly outside the network coverage. To cover this, IEBC proposed 1,000 and 1500 satellite units (at cost of Sh550 million and Sh825 million respectively) to be used in results from outside the requisite network. The first batch of Airtel’s 1,000 Thuraya data modems and SIM cards were distributed to constituencies before the Aug 8 elections. However, in the end, only 339 modems and SIM cards with 4GB were used. The rest, according to IEBC internal audit, were deliv­ ~ed OOAUgt!St 24, 2Ql{, way after the polls – altllopgh the Auditor General says that they were in fact supplied much later, on October 5, 2017. Yet, despite this, IEBC still went ahead to give out another contract for 1,000 units for FPE and which were received in January 2018. I The Commission appeared not interested in the devices it had procured for the August polls or the unused 600. At the end, owing to delay in delivery, IEBC “reactivated and reused” the devices, according to Auditor General. Same supplier That apart, a ballot box that cost Sh1,800 during the August election was later procured at Sh2,500 for the FPE. This was in spite of the similarity in specifications and same supplier. Thus IEBC lost Sh27.9 million (from purchase of 42,927 boxes) in inflated costing. Mini Mix Agencies was on March 3, 2017 awarded the Sh19.5 million contract to supply and deliver 3,696,000 security seals at unit price of Sh5.30. However, it delivered just 2,001,600 units on July 22, 2017. The rest, 1,694,400 seals, were sup­ plied on October 19, 2017 – more than 2 months after the election. Yet IEBC didn’t terminate the contract even after the supplier had stalled. Instead, the commission rushed to contract Ramaas Supplies Ltd, through direct procurement, for 500,000 seals at Sh24.5 million (at Sh49 a unit) to mitigate the shortfall. Instructively, this company had failed at the preliminary evaluation stage during the tender process, having quoted Sh18.10 a unit. High Court Judge Pauline Nyam­ weya last October ruled that the Sh350 million contract to provide “strategic communication and in­ tegrated media campaign services” was irregular. The Secretariat had deviated from plenary resolution and inex­ plicably hired ScanAd. All said, “election 2017 was a swindle;’ according to a member of the now-defunct Interim Independ­ ent Electoral Commission. “The theft was beyond the imaginable:’

 

Wiki: A brief History of Kenya

Kenya has a rich and complex history. Unfortunately, much of it risks being lost due to inadequate documentation, fragmented storytelling, and the passage of time. Even more concerning is the recurring tendency to revise history to suit prevailing political, social, or ideological dispensations. In the process, important truths are often diluted, overlooked, or reshaped to fit contemporary narratives.

On this wing of the How and Where blog, you will find a space for explanation, reflection, and contextualisation. This is where we go beyond headlines and surface-level accounts. Here, we seek to help you understand not just what is happening, but why it is happening.

We explore Kenya’s past deliberately and thoughtfully. This wiki revisits historical episodes, unpacking key moments, and examining the decisions, conflicts, and forces that have shaped the nation. From pre-colonial societies to the colonial period, from independence to modern-day governance, we connect the dots between then and now.

At the same time, we pay close attention to current affairs. Today’s events are tomorrow’s history, and documenting them with clarity and honesty is essential. We record and analyse ongoing developments not just as news, but as part of a larger story that future generations will look back on for understanding.

This section is, therefore, both a mirror and a lens: a mirror reflecting where Kenya has been, and a lens through which we can consider where it might be going. By grounding ourselves in historical context and engaging critically with the present, we aim to foster a deeper, more informed perspective on the country’s journey.

Ultimately, this is a space for curious minds—those who want to understand Kenya beyond the obvious, to question narratives, and to appreciate the layered realities that define the nation today.

Maziwa ya nyayo

Rio Olympics Scandal

The 2016 Rio Olympic Games should have been remembered as one of Kenya’s greatest sporting triumphs. Against enormous odds, Kenyan athletes delivered an outstanding performance, bringing home 14 Olympic medals. The medal haul and reinforced the country’s reputation as a global athletics powerhouse. But instead, the celebrations were overshadowed by one of the darkest scandals in Kenya’s sporting history. The scandal defined by corruption, greed, and the betrayal of the very athletes who carried the nation’s hopes.

55m lost in Rio Olympic scandal

Investigations later revealed that more than Sh55 million in public funds allocated for Team Kenya’s participation in Rio had been embezzled. Money intended to pay for athletes’ travel, accommodation, meals, and bonuses disappeared through systematic mismanagement. Senior government officials and officials from the National Olympic Committee of Kenya (NOCK) were involved.

While sports administrators and political hangers-on travelled first class, stayed in luxury hotels, and enjoyed generous allowances, many athletes were abandoned. Some found themselves stranded in poor accommodation in Rio.  They lacked basic necessities and uncertain whether they would even receive the official uniforms and equipment needed to compete.

Team Kenya’s official Nike kits

Perhaps the most outrageous symbol of the scandal was the theft of Team Kenya’s official sportswear, donated by Nike. The kit meant to ensure Kenyan athletes looked the part on the world’s biggest sporting stage, was diverted. In one of the scandal’s most embarrassing moments, police raided the home of NOCK Vice President Ben Ekumbo,  The police reportedly discovered boxes of the stolen uniforms hidden beneath his bed.

Despite the chaos, Kenya’s athletes continued to compete with remarkable determination. They won medals through resilience, discipline, and personal sacrifice rather than institutional support. Their success became a testament to their extraordinary talent It  also became a painful reminder of how much more they might have achieved with proper backing.

Criminal Prosecutions

The scandal eventually led to criminal prosecutions. Former Sports Cabinet Secretary Hassan Wario and Team Kenya’s Chef de Mission Stephen Soi were convicted of corruption-related offences, including abuse of office. Although both avoided lengthy prison sentences by paying substantial fines, the convictions marked a rare moment of accountability for high-ranking officials involved in the misuse of public resources.

Doping

Running alongside the financial scandal was another crisis that further damaged Kenya’s sporting reputation.  There was accusation of widespread doping cover-up. Major Michael Rotich, manager of Kenya’s athletics team, was exposed in an undercover investigation agreeing to warn athletes about impending drug tests in exchange for bribes. The International Association of Athletics Federations (now World Athletics) responded with a 10-year ban. This reinforced international concerns about corruption within Kenyan athletics administration.

The Rio Olympics exposed more than financial theft. They revealed a system that failed its athletes at every level. Those entrusted with protecting and supporting Kenya’s sporting heroes instead exploited public resources for personal gain. Meanwhile athletes endured uncertainty, inadequate living conditions, and broken promises.

Yet the legacy of Rio is not solely one of corruption. It is also a story of extraordinary resilience. Kenya’s athletes proved that even when betrayed by those meant to serve them, their talent and determination could still inspire a nation. Their achievements do not  deserve to be remembered alongside the greed of officials, Instead they should be a reminder that integrity, accountability, and athlete welfare must always come before personal enrichment if Kenyan sport is to thrive.