Ruto: How Kenya will cushion economy from Iran war

President William Ruto/PCS

PresidentWilliam Ruto has announced a raft of measures aimed at shielding Kenya’s economy from the ripple effects of ongoing conflict in the Middle East, which has disrupted global supply chains and driven up commodity prices.

In a statement issued after a high-level briefing with key government agencies and private sector players, President Ruto said the unfolding situation in the Gulf region is already exerting pressure on economies worldwide.

The President noted that Kenya, like other African countries, is not immune to these shocks but assured that the government remains vigilant and is actively managing the situation through coordinated interventions.

“The ongoing conflict in the Middle East is having a significant impact on the global economy. This disruption is already being felt across global supply chains and is placing pressure on economies worldwide,” he said.

Ruto said the government is closely monitoring international oil prices and putting in place measures to cushion Kenyans from sharp increases while ensuring an adequate supply of petroleum products.

“Rising international oil prices are already affecting consumers globally. However, the government-to-government fuel procurement arrangement has cushioned Kenyans from immediate shocks,” he said.

According to the President, the arrangement has helped stabilise prices and guarantee supply, terming it a prudent and forward-looking intervention.

He said that the Ministry of Energy, working alongside the National Treasury, will continue to assess global price trends and implement further mitigation measures where necessary.

The President also sought to allay fears of possible fertiliser shortages, saying the country has sufficient stocks to support farmers through the current rainy season up to September.

“On fertiliser, I wish to assure the nation that no disruptions are expected. We have sufficient supplies to support the current rainy season through to September this year,” he said.

Despite concerns that key exports could be affected, particularly tea, Ruto said Kenya’s trade performance remains strong due to market diversification and strengthened export channels.

According to the latest data, 81 per cent of tea offered for auction this month was sold, an improvement from 75 per cent recorded in March last year.

The President also highlighted increased activity at the Port of Mombasa and Port of Lamu, pointing to Kenya’s growing strategic role in global logistics.

Notably, the Port of Lamu has handled more than 4,000 high-value motor vehicles destined for Gulf markets for onward transshipment.

However, Ruto acknowledged that the meat export sector has been adversely affected by logistical and freight challenges linked to the disruptions.

He said the Ministries of Trade and Agriculture are working together to explore alternative solutions to support exporters and sustain market access.

Reaffirming the government’s commitment, the President said authorities will continue to closely monitor global developments and take decisive action to safeguard the country’s economic stability.

“We remain committed to closely monitoring developments and taking decisive action to safeguard the economic well-being of all Kenyans,” he said.