Kenya's supplementary budget comes at a time when global oil markets remain volatile amid geopolitical tensions in the Middle East, a development that has heightened the importance of maintaining reliable fuel supply systems in East Africa.
- •The State Department for Petroleum will see a marginal adjustment in the 2025/26 supplementary estimates, as total allocation rises slightly to KSh 30.72 billion, from KSh 30.69 billion in the original budget estimates.
- •Kenya relies entirely on imported refined petroleum products, making efficient supply chains and storage capacity essential to the country’s energy security.
- •Under the revised budget, recurrent expenditure increases to KSh 25.41 billion, compared with KSh 25.38 billion previously approved.
The government has maintained development spending at KSh 5.31 billion, as it seeks budget stability in the petroleum sector, which is critical for supporting Kenya’s economy. Government programmes have increasingly focused on strengthening fuel reserves, improving petroleum market data systems and reinforcing regulatory oversight of the downstream market.
For Kenya, a net oil importer whose entire petroleum supply arrives by sea, what happens in the Strait of Hormuz, which is currently facing closure as the Middle East conflict intensifies, eventually shows up in transport, food, electricity, and manufactured goods.
Kenya has a government-to-government fuel supply agreement with three Gulf state oil companies — Saudi Aramco, the Emirates National Oil Company (ADNOC), and Abu Dhabi National Oil Company — extended through 2027.
Read more on the 33km chokepoint in the Middle East through which 20% of global oil supplies, among other critical inputs, pass through.
