Mbadi: Pump prices to stay put for at least two months

With the conflict entering day 34, Mbadi sought to calm fears of an upward review of petrol prices, saying the country has sufficient stock to withstand the shock.

Although products destined for Kenya are loaded from petroleum terminals in Kuwait, Saudi Arabia, Bahrain and the UAE and transported via the Strait of Hormuz, which has experienced disruption, Mbadi said the crisis is not expected to have an immediate impact.

He said the current fuel pricing cycle (March 15 to April 14) is not likely to be affected since the product concerned was delivered prior to the Middle East crisis, while in the next pricing cycles, product prices, insurance, war risk and demurrage rates are expected to increase due to the conflict.

“Notwithstanding this, pump prices may not rise in the next two months as has been speculated,” he told MPs while appearing before the Departmental Committee on Finance and National Planning of the National Assembly on Thursday morning.

The CS said suppliers contracted under the G-to-G arrangement source oil products mainly from the Middle East at import cycles of approximately one and a half months, and also have alternative loading routes.

He added: “In light of disruption of supplies routed through the Strait of Hormuz, suppliers are loading from alternative ports, for example, in Europe and India.”

According to Ministry of Energy and Petroleum data cited by Mbadi, as at March 30, the country held 138,623 metric tons of super petrol, sufficient for 16 days, 207,841 metric tons of diesel for 19 days, and 150,398 metric tons of jet fuel to last 49 days.

Expected deliveries for March and April include 290,000 metric tons of super (47 days’ cover), 182,900 metric tons of diesel for 20 days, and 60,000 metric tons of jet fuel for 25 days.

Import plans for May to July include 510,000 metric tons of super, 765,000 metric tons of diesel and 200,000 metric tons of jet fuel.

The Treasury said the government has policy mechanisms designed to protect consumers from volatility in global oil prices and reduce domestic pump price spikes.

In the 2025/26 financial year, Mbadi said the Fuel Stabilisation Fund was allocated Sh25 billion, of which approximately Sh17 billion is currently available.

“Given the expected significant spike in fuel prices, this remaining balance could be used to stabilise fuel prices over a three-month period, after which the fund would be exhausted if the conflict persists,” the Treasury CS said.