The Government has assured Kenyans that the country’s petroleum supply remains stable despite escalating tensions in the Middle East that have disrupted global oil markets and triggered uncertainty over international fuel prices.
Energy and Petroleum Cabinet Secretary Opiyo Wandayi said attacks on commercial vessels around the Strait of Hormuz had reduced oil tanker traffic and heightened volatility in global energy markets but had not affected Kenya’s fuel availability.
“Kenya’s fuel supply has held firm throughout. Every scheduled cargo has arrived and offloaded on time, and fuel has remained available at the pump throughout the country,” Wandayi said.
He attributed the stability to the Government-to-Government (G2G) fuel supply arrangement, which has enabled the country to source petroleum cargoes from a wider range of loading regions beyond the Gulf while maintaining uninterrupted deliveries.
According to the CS, the arrangement has insulated Kenya from rising freight and insurance costs that have affected countries relying on spot purchases and open tenders.
“Kenya has continued to pay the same fixed freight and premium. That fixed cost has kept our landed costs in check, ensured deliveries remain on schedule and allowed suppliers to load from alternative regions without passing the additional costs to Kenyan consumers,” he said.
Speaking in Nairobi on Tuesday, Wandayi noted that the benefits of the G2G arrangement become more evident during periods of global market instability, enabling the country to maintain supply security even as international oil prices fluctuate.
He, however, acknowledged that renewed tensions in the Middle East had pushed international oil benchmarks upwards, a trend likely to influence future fuel pricing cycles.
The Cabinet Secretary said the Ministry would continue working closely with industry players to ensure consistent fuel supplies, safeguard the terms of the G2G arrangement and keep the public informed on developments in the global energy market.
He reassured motorists, public transport operators, manufacturers, farmers, investors and other consumers that adequate fuel stocks remain available across the country.
“The global developments have not affected the availability of petroleum products in our country. Fuel remains readily available across the country, supported by adequate national stocks, a resilient and fully operational import and distribution system, and the continued success of the Government-to-Government fuel supply arrangement,” he said.
Wandayi said the G2G framework had strengthened Kenya’s energy security by improving supply predictability, enhancing resilience within the petroleum supply chain and reducing pressure on the country’s foreign exchange demand.
He added that Government investments in strengthening the petroleum sector had enhanced the country’s capacity to withstand external shocks and maintain a reliable fuel supply despite global market volatility.
To cushion households and businesses against rising international fuel prices, Wandayi announced that the Government, in consultation with the National Treasury, had extended the application of the eight per cent Value Added Tax (VAT) on petroleum products for a further three months until October 14, 2026.
He further announced that Sh945 million from the Petroleum Development Levy would be deployed during the July-August 2026 pricing cycle to maintain the current pump prices.
“These interventions reflect our broader commitment to protecting consumers, supporting businesses and safeguarding the economy from external shocks while ensuring petroleum products remain as affordable as possible under prevailing global market conditions,” he said.
The Cabinet Secretary reaffirmed the Government’s commitment to ensuring uninterrupted fuel supply and maintaining transparency as developments in the international energy market continue to unfold.
By Zipporah Odionyi and Nancy Omondi
