Iran War Fuel Crisis: How Kenya Is Securing Fuel Supply Through New Import Routes
Kenya has been moving swiftly to protect its fuel supply chain as rising tensions around the Strait of Hormuz threaten global oil flows.
Petroleum imports have since time in memory played a critical role in the country’s economy hence the government through the Energy and Petroleum Regulatory Authority (EPRA) has rolled out a series of measures to cushion the country from potential disruptions linked to an Iran-related crisis.
Diversifying Routes and Suppliers
One of the most significant steps Kenya has been taking is reducing its reliance on traditional fuel routes.
Shipments largely into Kenya have depended on the Strait of Hormuz, a key but vulnerable passage.
Now, according to EPRA’s Director of Petroleum and Gas, Edward Kinyua, the country is increasingly using alternative routes, particularly through the Red Sea corridor. This shift helps bypass high-risk zones while maintaining steady fuel inflows.
At the same time, Kenya has been expanding its supplier base. Instead of sourcing predominantly from the Middle East, the country is engaging partners from Europe and the Far East.
A master framework agreement signed with international suppliers further strengthens this strategy by requiring them to deliver fuel regardless of external disruptions.
Kenya is also developing strategic petroleum reserves. New regulations will allow major industry players to store fuel at port facilities, with the government retaining priority access during shortages. The model mirrors systems used in global hubs such as Rotterdam and Singapore, giving Kenya an added buffer against supply shocks.
G-to-G Deal and Economic Stability
Another critical pillar in Kenya’s fuel security plan is the Government-to-Government (G-to-G) import arrangement. While it has sparked debate, officials maintain that it has stabilized both fuel supply and the broader economy.
Previously, shortages of US dollars disrupted petroleum imports, as fuel is purchased internationally in dollars but sold locally in Kenyan shillings.
The G-to-G system has improved dollar liquidity, helping restore interbank trading and stabilize the exchange rate. This has had a ripple effect across the economy, ensuring that fuel continues to flow without major interruptions.
The arrangement involves major global oil firms, including Abu Dhabi National Oil Company, Emirates National Oil Company, and Aramco Trading Fujairah Limited. These companies manage the supply chain—from importation to distribution—while working with vetted local partners who understand Kenya’s market dynamics.
Overall, Kenya has been building a more resilient energy system. By diversifying routes and suppliers, strengthening fuel reserves, and stabilizing financial flows, the country is better prepared to navigate the uncertainties of a global fuel crisis and maintain steady economic growth.
