Government Reassures Kenyans of Stable Fuel Supply Amid Global Oil Market Uncertainty
By Fride Amiani
The government has assured Kenyans that the country has adequate petroleum supplies and a resilient fuel distribution system despite renewed tensions in the Middle East that continue to disrupt global oil markets and create uncertainty over international fuel prices.
Speaking on Tuesday ahead of the Energy and Petroleum Regulatory Authority (EPRA) announcement of the July–August 2026 fuel prices, Energy and Petroleum Cabinet Secretary Opiyo Wandayi said Kenya's petroleum supply has remained stable despite repeated disruptions to commercial shipping through the Strait of Hormuz, one of the world's busiest oil transit routes.
"As many of you know, today is the 14th of July 2026, when we were expecting EPRA to release the new prices for petroleum products. My role is to place you on the state of petroleum supply, global markets and Kenya's position," Wandayi said.
The Cabinet Secretary explained that recent military escalation in the Middle East has led to attacks on commercial vessels, significantly reducing oil tanker traffic through the Strait of Hormuz and increasing volatility in global energy markets. He noted that the situation remains unpredictable, with the strategic waterway frequently opening and closing as the conflict evolves.
"We are basically now operating under a new normal where the Strait of Hormuz is reopened, and after two or three days it is closed again. It is a really unpredictable state of affairs," he said.
According to Wandayi, the unstable security situation has unsettled international markets, causing global oil prices to fluctuate sharply from one trading session to another. He, however, maintained that Kenya has managed to shield itself from supply disruptions through its Government-to-Government (G2G) fuel import arrangement.
"What we can state plainly as government is this: Kenya's fuel supply has held firm throughout. Every scheduled cargo has arrived and has been offloaded on time, and fuel has remained available throughout the country," he said.
The CS said the G2G arrangement has enabled Kenya to source petroleum cargoes from a wider range of loading regions beyond the Gulf, ensuring uninterrupted supplies even when shipping routes in the Middle East are affected. He added that the arrangement has also protected the country from escalating freight and insurance costs that have affected importers relying on spot market purchases.
"The arrangement is doing exactly what it was built to do, and its advantage grows sharper the more volatile the market becomes. While freight and insurance costs have risen globally, Kenya continues to pay the same fixed freight and premium under the G2G framework," Wandayi said.
Although Kenya's fuel supply remains secure, Wandayi cautioned that renewed increases in international crude oil benchmarks are likely to influence future fuel pricing cycles.
"With the restart of the Middle East crisis, international benchmarks have now begun to climb again, and this renewed pressure will be reflected in the pricing cycles that will follow," he said.
To cushion consumers from rising global fuel costs, the Cabinet Secretary announced that the government, in consultation with the National Treasury, has 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 announced that the government will deploy KSh945 million from the Petroleum Development Levy during the July–August 2026 pricing cycle to sustain the current fuel price levels.
"These interventions reflect our broader commitment to protecting consumers, supporting businesses and safeguarding the economy from external shocks while ensuring that petroleum products remain as affordable as possible under prevailing global market conditions," he said.
Wandayi noted that Kenya has invested heavily in strengthening its petroleum sector over the past several years, resulting in improved supply reliability, enhanced resilience and greater energy security. He said strategic partnerships, modernised systems and sustained policy interventions have positioned the country to withstand external shocks without disrupting fuel availability.
He assured motorists, manufacturers, farmers, public transport operators, investors and businesses that there is sufficient fuel across the country and that the government remains committed to maintaining uninterrupted supplies.
"I therefore wish to reassure motorists, public transport operators, manufacturers, farmers, businesses, investors and indeed all consumers that there is adequate fuel across the country, and that the government remains steadfast in ensuring that this situation continues to obtain for the long haul," Wandayi said.
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