Energy Cabinet Secretary Opiyo Wandayi has once again assured Kenyans that the nation faces no fuel shortage, despite renewed fears stemming from the Middle East conflict. The CS attributed Kenya’s stable supply to the robust government-to-government (G2G) fuel importation framework, which has effectively mitigated disruptions in global markets, including those affecting the Strait of Hormuz.
On Friday, Mr. Wandayi firmly dismissed claims that the country’s fuel supply had been negatively impacted by the Middle East crisis, labeling such assertions as “mistaken” and “outrightly malicious.” He confirmed that fuel shipments are arriving punctually, storage levels remain consistent, and distribution across the country continues without interruption, even amidst volatility in international energy markets. “Kenya’s fuel supply remains secure, stable, and well managed despite ongoing global market uncertainty,” he stated.
These assurances come as escalating tensions in the Middle East raise concerns about potential disruptions to global oil supply chains, which could trigger fuel shortages and price hikes in importing nations like Kenya. The minister highlighted that the G2G framework has successfully shielded Kenya from supply challenges that have affected numerous countries both regionally and internationally. He explained, “Because the freight and premium component is fixed, we were able to benefit extensively as a country even as other countries were contending with the skyrocketing of freight and premium in the market.”
The CS further noted Kenya’s successful diversification of its fuel sourcing, now including Europe, the US Gulf Coast, India, and the Red Sea region. This strategic move followed regional tensions that impacted traditional supply routes through the United Arab Emirates. According to Mr. Wandayi, international suppliers operating under the G2G framework demonstrated remarkable flexibility by sourcing petroleum products from alternative markets, thereby helping Kenya avoid shortages and maintain stable supplies. This diversification, he added, has significantly strengthened the country’s energy sector by reducing reliance on a single corridor and ensuring continuity of supply even when traditional channels face disruptions.
Mr. Wandayi disclosed that Kenya currently incurs freight and premium costs of 78 US dollars per tonne for diesel, 84 US dollars per tonne for petrol, and 97 US dollars per tonne for Jet A1 fuel. He contrasted this with some markets exposed to open spot purchasing, which experienced freight and premium costs soaring to approximately 250 to 300 US dollars per tonne during the same period, underscoring the significant advantage of Kenya’s fixed-cost model.
In an encouraging development, the CS revealed early indications that international fuel prices are beginning to ease. “There are early signs that global pressures may begin to ease. Changes in demand patterns and improved supply routing are gradually stabilising international markets,” he remarked. While acknowledging that the situation remains fluid, he expressed optimism: “In the fullness of time, as global conditions stabilise, Kenyans can expect the benefits to be felt progressively through the system.”
The government, he affirmed, is actively engaging industry stakeholders to ensure that any reduction in global fuel costs is eventually reflected in local pump prices, directly benefiting consumers. “We are already seeing early signs of easing prices globally, and that benefit must be passed on to consumers,” he reiterated. The CS added that continuous consultations with manufacturers, transport and logistics players, oil marketing companies, distributors, public transport operators, and regulators are ongoing to ensure adequate fuel availability nationwide while protecting consumers from undue price pressures.
He also urged oil marketing companies to expedite the uptake of fuel already available within the system to create necessary room for incoming cargo. The CS confirmed that several fuel vessels are currently waiting offshore to offload products into the country. “The ships are lining up at sea waiting to discharge. My appeal to the oil marketing companies that have been allocated various quantities of these products is to move with speed and uplift those products for the system to be freed so that we can continue to receive more products,” he appealed.
Finally, the CS defended the government’s approach to fuel pricing, clarifying that policy interventions announced by President William Ruto do not negate the statutory price-setting mechanism administered by the Energy and Petroleum Regulatory Authority (EPRA). “The President did provide policy direction and as a community, together with entities including EPRA, we are guided by that policy direction. That does not in any way negate the established process of price determination by EPRA,” he concluded. His remarks come amidst heightened public interest in fuel prices, with the government maintaining that Kenya remains adequately supplied and well-positioned to withstand future shocks in the international energy sector.
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