Details on how Mombasa billionaire Jaffer Mohammed controlled the lucrative gas industry have are not shocking but what that is shocking is how he manages to escape responsibility despite using intimidation, police and various government agencies involved in the management of gas and cylinders supplies across the country as his tools to harass competitors and others.
Mohammed Jaffer became rich by associating himself with the late dictator Daniel Arap Moi and was one of the key financiers of the late president. To reciprocate, Jaffer was handed the lucrative business of establishing Grain Bulk Handlers at the port of Mombasa. The firm enjoys the monopoly of handling imported grains at the port including maize hence making his name to make a cameo appearance when the topic of underworld business dealings is ignited.
Chairman of Grain Bulk Handlers Limited Mohamed Jaffer pays tribute to the ex-dictator and mentor Daniel Arap Moi.
Back to gas industry wars, Jaffer using his connections in political circles operates African Gas Oil Limited. The firm imports gas in bulk shipment with storage facilities in Mombasa.
Agol’s main core business is to import gas and dispatch to industry players on wholesale. The wholesalers are then supposed to distribute across the country.
However, Jaffer who now boasts to have divorced deputy president William Ruto camp in Uhuru Kenyatta succession race claims to enjoy the support of Raila Odinga.
It is imperative to note, for years, the Odinga family has had vested interests in the gas industry trading as East African Spectre. The company manufactures liquid petroleum gas cylinders. The Odinga firm started trading as Erection Ltd but later changed to East African Spectre.
Jaffer in order to monopolise the industry has another sister firm Pro- Gas that now deals in retailing gas as Agol wholesales.
Industry players have always expressed their bitterness that Pro-Gas is favoured thus slowly knocking out other forces in supplies hence recent demands for action.
Jaffer intimidates every investor in the gas industry as he boasts to have members of Chief Justice David Maraga led Judiciary on his payroll and state security operatives. He is reputed to be close to high ranking judges in the judiciary including Court of Appeal judge Alnasir Visram. So strong is his influence that one of his sons is employed at the Court of Appeal.
It is the reason Jaffer wins a majority of cases filed against him or any of his firms; be it a demand by KRA for back taxes or against Kenya Railways whose huge tracts of land around the port of Mombasa GBHL has irregularly used to secure bank loans amounting to a staggering Sh45 billion( Story for another day)
One state agency Jaffer family boasts to control is EPRA, formerly Energy and Petroleum Regulatory Commission that has been in the last few years led by the embattled Pavel Oimeke.
The embattled EPRA Director-General is Robert Oimeke, when in Mombasa, is always spotted with the tycoon’s sons. Omeike boasts to enjoy the protection of Internal Security CS Fred Matiang’i. Matiang’i is on Raila side in the handshake deal and is an enemy of Ruto camp. Oimeke in Jaffer’s gas scandal has on side his side Edward Kinyua, director Petroleum and Gas Directorate. Oimeke, a Kisii uses Cyprian Nyakundi, a tribesman and director of enforcement and consumer protection to unleash terror and mayhem on his competitors.
After the board of Kenya’s Energy and Petroleum Regulatory Authority (EPRA) directed embattled director-general Pavel Oimeke to step aside after his reappointment for another three-year term was contested in court, he sought the help of Matiang’i who helped him but Oimeke being Oimeke, was again trapped in a corruption scandal, where he demanded for Ksh. 200,000 to open a petrol station that had issues with KRA. Reports indicate the CS blocked all access to Oimeke as he is now a liability.
Back to Nyakundi, Our investigations reveal that Nyakundi works with Agol security chief officer, a retired army major, Ole Tulu.
Ole Tulu compiles a list of players in gas industry that he wants premises closed and forwards to Nyakundi. Involving the police, a crackdown is ordered across the country with those arrested as far as Western, Coast, Central and Eastern being driven to Nairobi Parklands Police Station where they are booked.
Epra works for Jaffer’s lucrative investments that enable him have an advantage in controlling gas prices, importation and gas intake in Kenya.
In gas cylinders crackdown, those targeted are accused of selling insecure cylinders to members of the public, thus endangering lives.
Involved in the crackdown are counterfeit agencies among them Kebs.
But one may ask, why target gas cylinders in the crackdown? According to industry players, Kenya has six million households depending on the gas. Key players in the industry Kobil, Total, Shell and Pro-Gas want to trade with own trade mark cylinders while small scale firms in retain want free trade.
Having manipulated to have Energy Act in their favour, the big boys who own the cylinders are slowly knocking out small players.
In the energy Act, if a small player is found retailing gas in cylinders owned by big boys, they are arrested, charged with a fine of Sh10 million if found guilty. They are charged with filling and hoarding gas in illegal cylinders. Other charges involve safety. The act stipulates that safety belongs to the brand owner hence the monopoly by big brothers.
With Jaffer family monopolising the gas industry, fear is now that he can decide to create an artificial gas shortage that will have a great impact on the economy.
Fear is also that the Kenya government is sleeping on a time bomb as the Jaffer family decides not to sell gas or has the shipment stay in high seas.
Back at Epra, Oimeke kitchen cabinet of Kinyua and Nyakundi is at war with other directors who accuse them of enriching themselves at the expense of streamlining industry operations.
Directors said not to get on well with the cartel are Mueni Mutunga (commission secretary), James Kilonzo, (corporate services), Fredrick Nyang (economic regulation), Joseph Oketch (electricity and renewable), Loise Thuge (chain supply) and Esther Njenga (corporate strategy).
The only woman in the kitchen cabinet is Everlyne Orenge (internal audit) and she said to be powerful and has Omeike ears.
Caught in the wars is Cliff Musyoka who works for Petroleum Institute of East Africa as CEO and who backs Jaffer side who oils his hands every weekend.
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