The government has assured Kenyans that the country’s fuel supply remains secure despite escalating tensions in the Middle East, saying strategic measures have insulated the local market from global supply disruptions and helped maintain stable fuel prices.
In a statement issued on Tuesday, Energy and Petroleum Cabinet Secretary Opiyo Wandayi said recent military escalation around the Strait of Hormuz had disrupted commercial shipping and heightened uncertainty in global energy markets, but Kenya’s fuel supply chain had remained uninterrupted.
The CS noted that attacks on commercial vessels and reduced tanker traffic through the strategic waterway had increased volatility in international oil markets, with benchmark prices fluctuating sharply.
However, he said Kenya had continued to receive all scheduled fuel cargoes on time under the Government-to-Government (G2G) fuel import arrangement.
“Kenya’s fuel supply has held firm throughout. Under our Government-to-Government arrangement, cargoes have continued to be sourced from a wider set of loading regions beyond the Gulf, every scheduled cargo has arrived and offloaded on time, and fuel has remained available at the pump throughout the country,” Wandayi said.
The Cabinet Secretary said the current global market conditions had demonstrated the value of the G2G fuel import framework, arguing that it had shielded Kenya from rising freight and insurance costs affecting countries relying on spot market purchases.
According to Wandayi, the fixed freight and premium terms negotiated under the arrangement have kept Kenya’s landed fuel costs in check while allowing suppliers to source cargoes from alternative regions without passing additional costs to consumers.
“The arrangement is doing exactly what it was built to do, and its advantage grows sharper the more volatile the market becomes,” he said.
Despite the stable supply, the CS cautioned that renewed increases in international crude oil prices could exert pressure on future domestic fuel pricing cycles.
He said the ministry would continue working closely with industry players to ensure uninterrupted supply, protect the terms of the G2G arrangement and keep the public informed about developments in global energy markets.
To cushion consumers from the impact of international market volatility, Wandayi announced that, in consultation with the National Treasury, the government had extended the application of the 8 per cent Value Added Tax (VAT) on petroleum products for a further three months until October 14, 2026.
He also disclosed that the government will deploy KSh945 million from the Petroleum Development Levy during the July–August 2026 pricing cycle to maintain current fuel prices.
The CS said the interventions are aimed at protecting households, businesses and the broader economy from external shocks while ensuring petroleum products remain as affordable as possible.
He reassured motorists, public transport operators, manufacturers, farmers, investors and other consumers that the country has adequate fuel stocks supported by a resilient import and distribution system.
“As a Government, we have invested significantly in building a more resilient petroleum sector that is better equipped to withstand external shocks,” Wandayi said, adding that the systems and partnerships established over the past few years continue to strengthen Kenya’s energy security and guarantee a reliable fuel supply despite heightened global uncertainty.
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