The Government has assured Kenyans that the country’s fuel supply remains stable despite renewed military tensions in the Middle East that have disrupted global shipping through the Strait of Hormuz and heightened uncertainty in international oil markets.
Energy and Petroleum Cabinet Secretary Opiyo Wandayi said Kenya has maintained uninterrupted fuel supplies through its Government-to-Government (G2G) fuel import arrangement, which has continued to shield the country from escalating freight and insurance costs affecting global energy markets.
The reassurance comes as attacks on commercial vessels in the Strait of Hormuz have reduced oil tanker traffic to its lowest level in nearly two months, triggering volatility in global crude oil prices.
“Kenya’s fuel supply has held firm throughout,” Wandayi said in a statement.
He noted that under the G2G arrangement, fuel cargoes have continued to be sourced from a wider range of regions beyond the Gulf, with all scheduled shipments arriving and offloading on time, ensuring uninterrupted availability of petroleum products across the country.
According to the CS, the G2G framework has proved particularly valuable during the current global uncertainty by allowing Kenya to maintain fixed freight and premium costs even as international benchmark prices fluctuate.
“While importers who depend on spot purchases and open tenders have watched their freight and insurance costs climb with each fresh disruption, Kenya has continued to pay the same fixed freight and premium,” he said.
He added that the arrangement has enabled suppliers to source fuel from alternative regions without passing the additional costs on to Kenyan consumers.
Although international oil benchmarks have started rising again following the renewed Middle East conflict, Wandayi said the Government would continue working with industry players to maintain adequate supplies and defend the favourable terms secured under the G2G agreement.
He assured motorists, businesses and industries that the country has sufficient fuel stocks, supported by a resilient import and distribution system and strengthened energy security measures.
The CS said the Government has invested heavily in building a more resilient petroleum sector capable of withstanding external shocks, giving Kenya greater confidence in maintaining reliable fuel supplies even during periods of global market instability.
To cushion consumers from the impact of rising international oil prices, the Government, in consultation with the National Treasury, has extended the application of the reduced 8 per cent Value Added Tax (VAT) on petroleum products for another three months, until October 14, 2026.
In addition, the Government will deploy Sh945 million from the Petroleum Development Levy during the July-August 2026 fuel pricing cycle to help sustain current pump prices.
Wandayi said the measures are aimed at protecting households, businesses and the wider economy from global market shocks while keeping fuel prices as affordable as possible.
He reiterated the Government’s commitment to ensuring adequate fuel supplies across the country for the foreseeable future, despite continuing uncertainty in international energy markets.
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