Energy CS Opiyo Wandayi Addresses The Nation on Fuel crisis & State of the economy

Added: 2026-05-30

[00:00:00]that Kenya has not suffered the kind of petroleum product shortages that have been witnessed in a vast number of countries in the region and beyond.

[00:00:16]It may look like a miracle.

[00:00:20]Why in Kenya the debate has been about price and not about availability of the stocks.

[00:00:29]We must credit uh this state of affairs to the G2G framework.

[00:00:38]But beyond this the G2G framework has also enabled greater diversification in sourcing fuel.

[00:00:47]Cargoes are now being loaded from a broader range of international supply points including Europe the US Gulf Coast India and Red Sea region.

[00:01:00]Uh there was a misrepresentation from certain political quarters that Kenyan fuel was not passing through the Strait of Hormuz.

[00:01:14]It's laughable.

[00:01:15]Because as a matter of fact the bulk of our fuel cargoes over time have been loaded from uh the ports of Jebel Ali uh the port of uh Ruwais and to some extent uh the port of Fujairah all in the UAE within the Strait of Hormuz space.

[00:01:47]So, it's a fact that the Strait of Hormuz closure affected our primary supply route directly.

[00:01:56]And because of the G to G framework which has proved to be extremely resilient, we have been able to diversify the source the ports of of of loading as I've indicated.

[00:02:11]And that is to say that our international oil company uh suppliers have been flexible enough to be able to source these products from many other sources other than the primary sources uh that we >> [clears throat] >> were known to everybody before the war broke out.

[00:02:33]And so for those who are making those allegations, you can see uh that you are either mistaken or you are out at the outrightly malicious uh in your outburst.

[00:02:46]But this diversification strengthens resilience, reduces reliance on any single route, and ensures continuity even when traditional supply channels face disruption, as has been the case.

[00:03:01]Additionally, we continue to benefit from the stability of the G to G framework in pricing, in that our freight and premium costs remain relatively stable.

[00:03:15]And let me again explain this.

[00:03:19]Freight and premium are a key component of the landed cost in Mombasa.

[00:03:26]That I'm sure is now clear to everybody.

[00:03:30]That accompanied being of course the international benchmark price, which continues to fluctuate.

[00:03:36]Okay. But because under the G to G framework, freight and premium component is fixed, we were able to this was able to make us as a country benefit extensively, even as other countries were contending with the skyrocketing of the freight and premium in the market.

[00:04:01]Again, as a matter of fact, our freight and premium under the G2G framework is 78 US dollars per ton for diesel, 84 US dollars per ton for petrol, and 97 US dollars per ton for jet A1 fuel.

[00:04:28]While some markets which were exposed to open spot purchasing experienced freight and premium costs rising to approximately US dollars 250 to 300 [clears throat] per ton during this period, and you can imagine the the difference.

[00:04:50]Let me continue by saying that there are early signs that global pressures may begin to ease.

[00:05:00]Changes in demand patterns and improved supply routing are gradually stabilizing international markets.

[00:05:08]But while the situation remains fluid and unpredictable, the direction is encouraging.

[00:05:17]In the fullness of time, as global conditions stabilize, Kenyans can expect the benefits to be felt progressively through the system.

[00:05:29]In the long term again, plans are underway to get our own refineries here in the region.

[00:05:38]We will continue to engage closely with all stakeholders across the energy value chain, including manufacturers, oil marketing companies transport and logistics players public transport operators distributors and sector regulators while keeping the public informed as the situation evolves.

[00:06:03]In a nutshell, uh the country continues to enjoy security of supply of petroleum products.

[00:06:12]In fact, I'm appealing to oil marketing companies to move with haste and uplift the product from the system to enable us uh discharge more.

[00:06:24]As we speak, ships or vessels are lining up uh at the sea waiting to discharge.

[00:06:33]So, my appeal to the oil marketing companies who have been allocated the various quantities of these products to don't hesitate to move with speed and uh and uh uplift those products uh for this for the system to be freed so that we can continue to receive more products. Otherwise, thank you very much and God bless you.

[00:06:57]I think >> did provide the policy direction whilst at EPRA.

[00:07:58]And as a ministry together with the entities including EPRA, we are guided by that policy direction.

[00:08:10]That does not in any way negate the the established process of price determination by EPRA.

[00:08:19]But you must remember that as government we have got many tools at our disposal to intervene appropriately when required. Thank you.

[00:08:29]Thank you very much and God bless.