Global tensions have rattled oil markets, but the Kenyan government says motorists have no reason to panic.
Energy and Petroleum Cabinet Secretary Opiyo Wandayi has assured Kenyans that the country has sufficient fuel stocks despite renewed military escalation in the Middle East disrupting global energy markets.
In a statement issued on Tuesday, July 14, Wandayi said Kenya’s petroleum supply remains stable, even as attacks around the Strait of Hormuz continue to affect international shipping and drive uncertainty in global oil prices.
Is Kenya facing a fuel shortage?
According to the CS, Kenya has continued receiving all scheduled fuel shipments on time under the Government-to-Government (G2G) fuel import arrangement, ensuring uninterrupted supply across the country.
“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.
He explained that while many countries relying on spot purchases have experienced rising freight and insurance costs, Kenya has continued to benefit from fixed freight charges under the G2G arrangement.
“The arrangement is doing exactly what it was built to do, and its advantage grows sharper the more volatile the market becomes,” he added.
Government extends fuel tax relief
Although Wandayi acknowledged that renewed tensions in the Middle East are likely to push global fuel prices higher, he announced measures aimed at shielding Kenyans from the impact.
The CS revealed that the government, in consultation with the National Treasury, has extended the 8% Value Added Tax (VAT) on petroleum products for another 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 keep pump prices unchanged.
“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,” Wandayi said.
He further reassured motorists, transport operators, farmers, manufacturers, investors and other consumers that Kenya has adequate fuel stocks and that the government remains committed to maintaining uninterrupted supply despite global uncertainty.