A fresh dispute has erupted in Kenya’s fuel sector after the Kenya Transporters Association warned of widespread supply disruptions, even as the Government moved to crack down on what it termed an unauthorised and costly fuel import.
- •Transporters have raised “deep concern and frustration” over what they described as a widening gap between official assurances of adequate fuel stocks and the situation on the ground, where operators report rationing and limited access to bulk supplies.
- •The association said the strain has been compounded by oil marketers withdrawing credit facilities, forcing transporters into cash purchases and disrupting long-haul logistics as trucks refuel in small quantities across multiple stations.
- •But in a parallel development, the government disclosed that a 60,000-metric-tonne consignment of super petrol had been imported outside the official government-to-government (G-to-G) framework, an arrangement it says has stabilised prices and ensured steady supply.
“If indeed the country has sufficient fuel, then the market must reflect this reality immediately and consistently,” the industry lobby group said, warning that continued disruptions could undermine the movement of essential goods and transit cargo across the East African Community.
In a press release dated April 7, Energy Cabinet Secretary Opiyo Wandayi said the cargo violated established procurement procedures and posed a risk to the integrity of the fuel supply system.
The ministry revealed that the shipment was priced at about KSh 198,000 per metric tonne, significantly higher than the roughly KSh 140,000 per metric tonne under the G-to-G arrangement, translating to an estimated increase of KSh 14 per litre at the pump if passed on to consumers.
Authorities have since ordered the importing firm to withdraw all invoices and issue credit notes, while directing oil marketing companies not to pay for or uplift the product. The consignment is also expected to be exported out of the country, with the Energy and Petroleum Regulatory Authority instructed to exclude it from fuel price computations.
The government insisted it will not allow any actions that could trigger artificial shortages or unjustified price increases, reaffirming its commitment to safeguarding the integrity of the G-to-G fuel supply chain.
The developments come against the backdrop of earlier government assurances that Kenya has sufficient fuel stocks despite supply chain pressures linked to the escalating conflict in the Middle East. Following a March 30 briefing to William Ruto, officials maintained that strategic fuel procurement had shielded the country from global price shocks.
