IN SHORT: President William Ruto warned oil marketers on March 26 that the government will not tolerate artificial fuel shortages engineered by profiteers amid the Middle East crisis. Speaking at State House after bilateral talks with Mozambique President Daniel Chapo, Ruto said progress has been made securing alternative supply routes and that Kenya’s G-to-G oil import deal continues to shield the country from spot market volatility.
President William Ruto has put Kenya’s oil marketers on notice, warning that the government will act against any licensed operator caught manufacturing artificial fuel shortages for profit as the Strait of Hormuz disruption tightens global supply chains and triggers stock-outs at some Kenyan petrol stations. Speaking on March 26, Ruto confirmed that the Ministry of Energy has been tasked with engaging existing suppliers and identifying alternative oil sources, and expressed confidence that Kenya’s government-to-government import arrangement continues to provide structural protection.
- Ruto warned that the government “will not entertain any artificial shortages meant to benefit profiteers” and said every licensed oil marketer is being monitored for licence compliance.
- The Strait of Hormuz disruption, a direct consequence of the US-Israel war on Iran, is affecting logistics, insurance costs, and shipping routes for fuel heading to East Africa.
- Several petrol stations across Kenya have reported temporary stock-outs, with some operators cited for hoarding in anticipation of a price hike in the next monthly review cycle.
- Energy CS Opiyo Wandayi separately confirmed on March 25 that the country has sufficient petroleum stocks and urged against panic buying.
- The G-to-G arrangement struck with Gulf oil marketers in 2023 fixes freight and premium costs and insulates Kenya from spot market volatility; it remains active and is expected to continue.
- Ruto tasked the Ministry of Energy to work with existing suppliers and find alternative sources “if necessary” to prevent shortages, without specifying the alternative origins.
- Kenya’s exposure extends beyond fuel: the country depends on Gulf trade routes for flower, coffee, tea, and sulphur exports, all now facing heightened uncertainty.
Africaspoint has tracked Kenya’s energy security through the Iran war crisis extensively. When the Strait of Hormuz first closed in late February, Kenya moved quickly to confirm stock coverage through April: see Kenya Secures Fuel Supply as Hormuz Crisis Deepens. The broader regional picture, with 75% of East and Southern African fuel imports flowing through the Gulf, was covered in Iran War Sends Oil Past $100. The latest stock-outs represent the first visible downstream impact of that disruption reaching Kenyan consumers directly.
The Bigger Picture: Ruto’s warning to profiteers is the right message but it addresses a symptom rather than the structural exposure. Kenya imports virtually all of its petroleum, its G-to-G deal provides price stability but not supply security if Gulf shipments are physically interrupted for long enough to exhaust reserves. The Ministry of Energy being tasked with finding alternative sources is a consequential signal: if it results in new supply agreements with Dangote or other African producers, Kenya would be meaningfully reducing a vulnerability that has been visible since the Iran war began. If it remains a political statement without procurement follow-through, the next Hormuz escalation will produce the same stock-out cycle with no structural improvement.
Source: Capital FM Business / The Star
