Kenya is advancing plans to create substantial fuel reserves capable of storing thousands of metric tons to protect against supply disruptions and scarcity concerns, according to Energy and Petroleum Cabinet Secretary Opiyo Wandayi.
Following his appearance before a parliamentary committee on Monday, April 13, Wandayi acknowledged that Kenya has no formal fuel reserves and instead depends on an unbroken supply chain where fuel is used immediately upon arrival.
This approach leaves the country vulnerable to shortages when supply chains are interrupted, as demonstrated by the current challenges stemming from the Middle East conflict.
To counteract these vulnerabilities, Wandayi outlined intentions to collaborate with private entities to develop fuel reserves capable of maintaining product supplies for extended durations.
We have not yet established fuel reserves. We are actively engaging with private sector partners interested in collaborating with the government on storage initiatives. Currently, the country consumes fuel as it arrives,” Wandayi explained.
His remarks coincide with Kenya experiencing a fuel shortage, triggering concerns about potential price increases for consumers prior to upcoming price adjustments.
The Kenya Pipeline Corporation reports that current fuel imports can sustain the nation for a maximum of 21 days. However, greater import volumes would be possible with existing storage facilities.
Recent controversy surrounding the importation of substandard fuel resulted in the resignation and detention of prominent energy sector officials. The products involved in the scandal were scheduled to arrive in two separate shipments.
The initial delivery consisted of 60,000 metric tons, intended to last 14 days before a second shipment arrived at the Port of Mombasa. This left the country at risk of exhausting its fuel supplies before the next delivery.
If Wandayi’s proposal receives consideration and expedited implementation, it would address a persistent weakness in Kenya’s energy infrastructure, where any interruption in the import, transportation, or distribution processes rapidly creates market uncertainty and concerns about potential shortages and price increases.
Upon implementation, Kenya would join African nations where conflicts typically affecting fuel distribution would not immediately affect the economy.
The Kenya Kwanza administration under President William Ruto has fundamentally transitioned to a public-private partnership framework for most initiatives, with the proposed fuel reserve following this approach.
Instead of constructing and maintaining reserves independently, the government aims to utilize private investment in storage infrastructure, reserving a portion of the capacity for national strategic needs.