Energy and Petroleum Cabinet Secretary Opiyo Wandayi has assured Kenyans that the government is working to stabilize fuel supply and cushion consumers from global oil shocks, even as hopes rise for lower pump prices in the coming months following easing tensions in the Middle East.
Wandayi said Kenya could begin to feel the impact of softer international oil prices from next month, depending on how quickly normal shipping operations resume through the Strait of Hormuz, a critical maritime route for global oil supplies and a key corridor for Kenya’s petroleum imports.
Speaking in Dorobo village, Mosiro ward, Narok East, where he launched a last mile electricity connectivity project, the Cabinet Secretary said the fuel crisis was not unique to Kenya but part of a wider global disruption triggered by instability in the Middle East.
He said the government had taken deliberate measures to protect consumers from the full impact of international price shocks, including the deployment of a Sh10 billion subsidy through the Petroleum Development Levy and the reduction of Value Added Tax on petroleum products to 8 per cent.
“We have stepped up to ensure Kenyans continue to receive a stable, continuous fuel supply within the country and to cushion Kenyans as much as possible from the full impact of this global crisis,” Wandayi said.
The CS said recent diplomatic developments involving the United States and Iran had raised expectations that the Strait of Hormuz would reopen fully, easing pressure on global oil markets.
However, he cautioned that any relief at the pump would not be immediate because Kenya’s pricing model is based on international benchmark prices from the previous month.
“When the situation in the Middle East stabilizes and there is resumption of normal supply along the Strait of Hormuz, we will be able to see the benefits come down to consumers, but it cannot be instant,” he said.
Wandayi said the government had already honoured its commitment to lower fuel prices in the latest monthly review by the Energy and Petroleum Regulatory Authority for the June 15 to July 14, 2026 pricing cycle.
Under the new schedule, diesel has dropped by Sh10 per litre to retail at Sh222.86 in Nairobi, offering some relief to transporters, manufacturers and households that rely heavily on diesel-powered services.
Super Petrol has reduced marginally by Sh0.22 to Sh214.03 per litre, while kerosene remains unchanged at Sh191.38 per litre.
The CS attributed the reduction to a combination of government interventions, including the Government-to-Government petroleum import arrangement with Gulf suppliers, subsidy support and the relative stability of the Kenya Shilling against the US Dollar.
He said maintaining VAT on petroleum products below the standard rate had forced the government to give up billions of shillings in revenue, but argued that the decision was necessary to shield households and businesses from higher transport, production and energy costs.
Wandayi further assured the country that Kenya’s petroleum supply chain remains secure, with storage facilities stocked through the end of July 2026. He said the government was also working with the private sector to strengthen petroleum strategic reserves and reduce future supply risks.
“We are working with the private sector to ensure petroleum strategic reserves,” he said.
He added that the government was pursuing discussions on the establishment of a regional petroleum refinery along the East African coastline, a long-term intervention he said would help lower fuel costs across the region by reducing dependence on fully imported refined products.
“We are in talks to establish a regional petroleum refinery on the East African coastline that will in the long term cut the cost of fuel in this region,” Wandayi said.
Beyond fuel, the CS said the government was accelerating its national electrification programme as part of efforts to lower the cost of doing business and support economic transformation.
He said the government is implementing a Sh64 billion National Electrification Strategy that targets 2.3 million additional household connections by 2027, with the broader goal of achieving universal electricity access by 2030.
According to Wandayi, 10.3 million households are currently connected to electricity out of 15.6 million households nationwide, placing Kenya’s electricity access rate above 75 percent. He said 1.4 million connections had been achieved between 2023 and 2026.
“The Government has intensified efforts to ensure all households in Kenya are connected to electricity by 2030, in a bold plan aimed at accelerating economic growth and improving livelihoods across the country,” he said.
In Narok County, Wandayi said ongoing electrification projects will connect an additional 22,000 households at a cost of Sh3 billion under the Last Mile Connectivity Programme.
He said the projects will also connect small businesses and public institutions to the national grid, improving productivity, public service delivery and rural economic activity.
“Electricity is no longer a luxury but a basic necessity that drives modern economies. Our goal is to ensure that every Kenyan household has access to reliable and affordable power,” he said.
The CS said reliable and affordable electricity remains central to the government’s industrialisation agenda, noting that power access will support manufacturing, agribusiness, digital jobs and small enterprise growth.
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