The High Court on Monday suspended the Mwananchi Cooking Gas project after distribution of faulty gas cylinders.
Judge Wilfrida Okwany ruled that the project by President Uhuru Kenyatta be temporarily stopped until a petition filed by Consumers Federation of Kenya (Cofek) was heard.
"An order for injunction be issued against the 1st, 2nd, 4th and 5th respondents from releasing any gas cylinders to the public pending the hearing and determination of the petition," stated Okwany.
A report by National Oil Corporation of Kenya (NOK) revealed that substandard Liquefied Petroleum Gas (LPG) was distributed by criminal contractors.
Analysis of the report further showed that 67,251 out of 353,000 cylinders supplied by four local firms were rejected after it was discovered they had faulty valves that were a danger to the users.
The findings of the report caught the attention of the DCI who launched investigations into the matter as reported by Business Daily.
NOK pointed out that the tender awarded for the project was worth Ksh 700 million.
Records by the State oil marketer disclosed that a local firm named Allied East Africa limited supplied a total of 148,750 cylinders where 47,534 were rejected for being defective.
Surge Energy supplied 104,125 cylinders where 11,823 considered faulty.
Accurate Power Systems provided 44,625 with 7,894 termed defective.
Only 59,500 cylinders supplied by Metal Mate were approved.