The move signals a major shift in Kenya’s energy strategy, as authorities seek to transition from a fragile supply model to a more stable and resilient system.
Speaking on Monday, April 13, 2026, Energy and Petroleum Cabinet Secretary Opiyo Wandayi confirmed that the government is working on a long-term plan to create sustainable fuel reserves.
Speaking on Monday, April 13, 2026, Energy and Petroleum Cabinet Secretary Opiyo Wandayi confirmed that the government is working on a long-term plan to create sustainable fuel reserves.
He noted that Kenya currently relies heavily on a just-in-time fuel supply system, leaving the country exposed to disruptions in the global oil market.
“We are yet to establish fuel reserves. We are working closely with private players who want to partner with the government on storage, but as of now, the country relies on fuel as it comes,” Wandayi told a parliamentary committee.
His remarks come amid growing concerns over fuel supply stability, driven by global tensions, particularly in the Middle East, which have disrupted shipping routes and influenced oil prices worldwide.
“We are yet to establish fuel reserves. We are working closely with private players who want to partner with the government on storage, but as of now, the country relies on fuel as it comes,” Wandayi told a parliamentary committee.
His remarks come amid growing concerns over fuel supply stability, driven by global tensions, particularly in the Middle East, which have disrupted shipping routes and influenced oil prices worldwide.
These developments have sparked anxiety among motorists and businesses, especially with the possibility of price increases in upcoming reviews by the Energy and Petroleum Regulatory Authority.
Currently, Kenya’s fuel storage capacity remains limited. According to the Kenya Pipeline Corporation, the country holds enough fuel to last approximately 21 days under normal conditions.
Currently, Kenya’s fuel storage capacity remains limited. According to the Kenya Pipeline Corporation, the country holds enough fuel to last approximately 21 days under normal conditions.
However, in practice, the situation is even tighter, with supply chains often operating on shorter cycles.
For instance, a recent shipment of 60,000 metric tonnes of fuel was projected to last just 14 days before the next consignment arrived at the port of Mombasa.
For instance, a recent shipment of 60,000 metric tonnes of fuel was projected to last just 14 days before the next consignment arrived at the port of Mombasa.
This narrow margin highlights how vulnerable the country is to delays in shipping, port handling, or inland distribution.
Wandayi warned that the lack of a strategic fuel reserve leaves Kenya with little room to absorb shocks.
Wandayi warned that the lack of a strategic fuel reserve leaves Kenya with little room to absorb shocks.
Any disruption in the supply chain can quickly trigger panic buying, artificial shortages, and price volatility in the local market.
Recent controversies surrounding the importation of substandard fuel have further exposed weaknesses in the sector.
Recent controversies surrounding the importation of substandard fuel have further exposed weaknesses in the sector.
The incident, which led to arrests and resignations of senior officials, raised serious questions about quality control, coordination, and long-term planning within the energy industry.
To address these challenges, the government now plans to partner with private investors to develop modern storage facilities capable of holding fuel for extended periods.
To address these challenges, the government now plans to partner with private investors to develop modern storage facilities capable of holding fuel for extended periods.
The initiative will be implemented under a public-private partnership (PPP) model, allowing private firms to finance, build, and operate the infrastructure while the government retains oversight.
Under the proposed system, a portion of the storage capacity will be reserved specifically for national use during emergencies.
Under the proposed system, a portion of the storage capacity will be reserved specifically for national use during emergencies.
This will ensure that the country maintains a strategic buffer to cushion against global supply disruptions or sudden spikes in demand.
“The idea is not only to prevent shortages but also to shield Kenya from sudden global price shocks and supply disruptions that often ripple into the local economy,” Wandayi explained.
If successfully implemented, the plan could place Kenya among a select group of African nations with robust strategic fuel reserves.
“The idea is not only to prevent shortages but also to shield Kenya from sudden global price shocks and supply disruptions that often ripple into the local economy,” Wandayi explained.
If successfully implemented, the plan could place Kenya among a select group of African nations with robust strategic fuel reserves.
It would also significantly reduce the uncertainty that often surrounds fuel supply, particularly during periods of global instability.
Ultimately, the initiative represents a critical step toward strengthening Kenya’s energy security, stabilizing fuel prices, and protecting the economy from external shocks that have historically disrupted supply and strained consumers.
Ultimately, the initiative represents a critical step toward strengthening Kenya’s energy security, stabilizing fuel prices, and protecting the economy from external shocks that have historically disrupted supply and strained consumers.
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