CS Wandayi Assures Kenyans of Stable Fuel Supply Despite Global Oil Market Volatility

   Photo Caption :Energy and Petroleum Cabinet Secretary Opiyo Wandayi   addresses the media on Kenya’s fuel supply outlook, assuring the country of adequate petroleum stocks despite global oil market volatility, in Nairobi on July 14,2026.

 Energy and Petroleum Cabinet Secretary Opiyo Wandayi has assured Kenyans of a stable and uninterrupted supply of petroleum products despite renewed geopolitical tensions in the Middle East that continue to unsettle global oil markets and drive up international crude oil prices.

Speaking ahead of the announcement of the latest petroleum pump prices, Wandayi said the government has put in place measures that have enabled the country to withstand external shocks, with the Government-to-Government (G2G) fuel import arrangement playing a key role in maintaining fuel availability and moderating import costs.

The CS said recent military escalation in the Middle East, particularly around the Strait of Hormuz, has disrupted commercial shipping, reduced oil tanker traffic and heightened uncertainty in global energy markets, resulting in sharp fluctuations in international oil prices.

“The market remains unsettled, and the Strait of Hormuz remains constrained, with commercial traffic running well below its usual levels. In a market of this kind, world prices can move either way within a week,” said Wandayi.

Despite the global uncertainty, he said Kenya’s petroleum supply chain has remained resilient, with all scheduled fuel cargoes arriving and being discharged on time to ensure uninterrupted supplies across the country.

“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.

Wandayi attributed the stability to the G2G fuel import arrangement, noting that the framework allows Kenya to procure petroleum from a wider range of international markets while maintaining fixed freight and premium costs even when global shipping charges rise.

He said the arrangement has insulated the country from escalating freight and insurance costs that have affected importers relying on spot market purchases and open tenders, enabling suppliers to source cargoes from alternative loading regions without passing additional costs to Kenyan consumers.

“The arrangement is doing exactly what it was built to do, and its advantage grows sharper the more volatile the market becomes,” he added.

The CS, however, cautioned that the renewed rise in international oil benchmark prices following the latest Middle East conflict could influence future petroleum pricing cycles.

He said the Ministry will continue working closely with industry players to safeguard fuel supply while keeping Kenyans informed of developments in global energy markets.

To cushion households and businesses from international price volatility, Wandayi announced that the government, in consultation with the National Treasury, has 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 the government will utilise Sh945 million from the Petroleum Development Levy during the July–August 2026 pricing cycle to sustain 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.

Wandayi said continued investments in the petroleum sector have strengthened Kenya’s energy security, improved the resilience of the fuel supply chain and enhanced the country’s capacity to withstand global market disruptions.

He reassured motorists, public transport operators, manufacturers, farmers, businesses and investors that the country has adequate fuel stocks and that the government remains committed to ensuring reliable and uninterrupted supply.

“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 for the long haul,” said Wandayi.