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Kenya Trade Official Charged in $120m Oil Import Scandal

Nurat  Uthman by Nurat  Uthman
July 31, 2024
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Kenya Trade Official Charged in $120m Oil Import Scandal
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by Nurat Uthman

In a significant move against corruption, Kenya’s former head of the state-owned trading company was charged in court on Tuesday for abuse of office and other offences related to a 2022 edible oil import scheme valued at over $120 million.

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Pamela Mutua, the former managing director of the Kenya National Trading Corporation (KNTC), is accused of violating procurement laws by awarding a contract to Purma Holdings Limited. The charges were presented in an anti-corruption court in Nairobi, the capital.

This marks the first prominent anti-corruption effort by President William Ruto’s administration following deadly protests against tax hikes and widespread graft that resulted in over 50 fatalities.

Mutua and KNTC have both denied the charges. While domestic media reports state the imports were worth KSh16bn ($123.55 million), the charges did not specify this amount.

Facing six charges, Mutua was released on bail and is set to appear in court again on August 12. She was charged alongside another KNTC official.

The oil import scheme, initiated by Ruto’s government after he took office in late 2022, aimed to reduce the price of edible oil. However, it has faced criticism for allegedly benefiting well-connected importers. The Kenya National Trading Corporation contracted private companies to import the oil, primarily from Asia. Initially, the government’s standards body declared the oil unfit for consumption but later cleared the consignment.

In response to the scandal and recent protests, President Ruto has pledged to reform the laws to facilitate the swift prosecution of corruption suspects. He has also begun forming a new government, retaining only one minister after the protests.

This case underscores the government’s renewed commitment to tackling corruption and restoring public trust in Kenya’s institutions.

Tags: KenyaOil import scandalTrade official
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