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Post Reply: Businessman Yagnesh Devani Faces Charges in Ksh 7.6 Billion Triton Oil Scandal After 16 Years on the Run

<blockquote><div class="quotetitle">Quote from <a class="profile-link highlight-moderator" href="https://lawguide.co.ke/understanding-law/legal-forum/profile/lawyer/">Lawyer</a> on July 24, 2025, 8:00 am</div><div id="pl-7164"  class="panel-layout" ><div id="pg-7164-0"  class="panel-grid panel-no-style" ><div id="pgc-7164-0-0"  class="panel-grid-cell"  data-weight="1" ><div id="panel-7164-0-0-0" class="so-panel widget widget_sow-editor panel-first-child panel-last-child" data-index="0" data-style="{&quot;background_image_attachment&quot;:false,&quot;background_display&quot;:&quot;tile&quot;,&quot;background_image_size&quot;:&quot;full&quot;,&quot;background_image_opacity&quot;:&quot;100&quot;,&quot;border_thickness&quot;:&quot;1px&quot;}" ><div
			
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	<p dir="ltr" data-pm-slice="0 0 []">After evading authorities for over a decade, businessman Yagnesh Mohanlal Devani was arrested and arraigned in court to face charges related to the Ksh 7.6 billion Triton Oil scandal, one of Kenya’s most infamous corruption cases. The Ethics and Anti-Corruption Commission (EACC) apprehended Devani at his Nairobi office on August 6, 2024, pursuant to a warrant issued in September 2009. The oil tycoon spent a night in police custody before appearing before Chief Magistrate Thomas Nzyuki at the Milimani Anti-Corruption Court, where he was charged with 11 counts of fraud, including conspiracy to defraud, obtaining money by false pretenses, and fraudulent disposition of mortgaged goods.</p>
<p dir="ltr">The Triton Oil scandal, which unfolded in 2008, centers on allegations that Devani’s company, Triton Petroleum Limited, irregularly accessed and sold 126.4 million liters of petroleum products stored at the Kenya Pipeline Company’s (KPC) Kipevu Oil Storage Facility in Mombasa. The oil, valued at approximately Ksh 7.6 billion, was released without the necessary approvals from financiers, including Emirates National Oil Company (ENOC), in breach of a Collateral Financing Agreement. This unauthorized release led to a severe fuel shortage in Kenya, drawing significant public and regulatory scrutiny. An audit conducted by the African Centre for Open Governance in July 2009 exposed the irregularities, revealing that Triton was neither entitled to the stocks nor had financier authorization for their release.</p>
<p dir="ltr">Devani, who was the executive chairman of Triton Petroleum, fled Kenya in 2008 shortly after the scandal broke, prompting the issuance of an arrest warrant in 2009. The Kenyan government initiated extradition proceedings, and after a prolonged legal battle, Devani was extradited from the United Kingdom in January 2024. Upon his return, he was charged on January 30, 2024, with a separate Ksh 1.5 billion fraud case involving the Kipevu jet fuel scam, for which he was released on a Ksh 1 million cash bail. However, his failure to appear in court for this case led to another arrest warrant issued in March 2024, as he skipped court sessions three times.</p>
<p dir="ltr">During his arraignment on August 6, 2024, the prosecution, led by Jeremiah Walusala, opposed Devani’s release on bail, citing his history as a flight risk. Walusala argued that Devani’s 16-year evasion of justice and the severity of the charges, which carry stiff penalties, justified denying bail. The charges include allegations that on September 5, 2008, Devani, as Triton’s managing director, conspired to defraud ENOC by disposing of 13,054.850 cubic meters of diesel valued at USD 10,446,888.36 (approximately Ksh 1.3 billion) and Ksh 32 million to Total Kenya Limited without ENOC’s consent. Another count accuses him of defrauding Kenya Shell Limited of USD 2.2 million and Ksh 7,059,201.59 by falsely claiming Triton had 4,449.42 cubic meters of diesel available for sale at KPC’s storage facility.</p>
<p dir="ltr">Chief Magistrate Nzyuki ordered Devani’s detention at Kilimani Police Station until August 7, 2024, to allow the Director of Public Prosecutions (DPP), Renson Ingonga, to file a formal charge sheet. The court also directed that a pre-bail report be prepared within seven days, detailing Devani’s social connections, behavior, and the whereabouts of his family, including his wife and son. The report was intended to inform the court’s decision on whether to grant bail. On August 19, 2024, Devani was granted release on a Ksh 20 million bond with a surety of the same amount or an alternative Ksh 5 million cash bail. The court barred him from traveling abroad without permission and ordered him to deposit his passport to prevent interference with prosecution witnesses.</p>
<p dir="ltr">Devani’s legal team, led by lawyers Moses Kurgat and Mwenda Mbaka, denied the charges and opposed plea-taking on behalf of Triton Petroleum, arguing that the company had been liquidated. Kurgat contended that the official liquidator should represent Triton in court, as Devani was not the sole director. However, the prosecution dismissed this claim, stating there was no evidence of Triton’s liquidation, prompting Nzyuki to request documentation regarding the company’s ownership as of December 2009.</p>
<p dir="ltr">The Triton case has seen significant developments over the years. Four co-accused individuals, including Samson Waka and Peter Muthungu of KCB Bank, Mahindra Pathak, Triton’s former finance manager, and William Mundia, were acquitted in February 2024 due to insufficient evidence. The prosecution’s case against them involved allegations of discounting invoices worth USD 12,241,873.90 (approximately Ksh 1.9 billion) at KCB Bank, despite Triton not having sold any oil. Another co-accused, Benedict Mutua Mbuvi, was ordered to defend himself in 2023 for stealing 12,623,239 metric tonnes of oil valued at USD 17 million, belonging to Fortis Bank.</p>
<p dir="ltr">In a surprising turn, on October 28, 2024, Devani was discharged from the Triton case after key witnesses, including former Energy Minister Kiraitu Murungi, refused to testify. Anti-Corruption Chief Magistrate Harrison Barasa ruled that the court could not compel the DPP and EACC to proceed without sufficient evidence, effectively halting the case. However, Devani remains entangled in the Ksh 1.5 billion Kipevu jet fuel scam case, where a court ruled on November 25, 2024, that he and Mahindra Pathak have a case to answer for stealing 318,656 metric tonnes of jet fuel valued at Ksh 1.5 billion from KCB Bank.</p>
<p dir="ltr">The Triton scandal has left a lasting impact, with the Kenya Revenue Authority (KRA) previously demanding Ksh 4 billion in unpaid taxes and penalties from Triton, alongside Ksh 2 billion in unpaid corporation taxes for the period ending December 2007. Triton’s alleged political connections during President Daniel arap Moi’s regime, which reportedly facilitated lucrative contracts, have fueled public outrage over the scandal’s unresolved nature. As Devani’s legal battles continue, the case underscores Kenya’s ongoing struggle to address high-profile corruption and hold influential figures accountable.</p>
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