Kenyas fuel import arrangement with Gulf-based suppliers is now under mounting pressure following Israel’s military strikes on key energy installations in Iran.
The escalating tension in the Middle East has triggered global concerns over potential disruptions in oil supply chains, a development that could hit Kenya hard, with fears of delayed shipments and a sharp spike in pump prices.
The Gulf region, particularly the United Arab Emirates and Saudi Arabia, has been a central player in Kenya’s government-to-government fuel import deal, which was designed to ease the burden of forex demand and stabilise prices.
However, with geopolitical tensions flaring, the stability of these energy flows is now in doubt.
Analysts warn that if the situation worsens, Kenya could be forced to revert to open market oil purchases, a move that may further strain the shilling and worsen the cost of living.
The Energy and Petroleum Regulatory Authority (EPRA) and relevant government agencies are closely monitoring the developments, as uncertainty grips both local importers and consumers.
