National Treasury Reveals Fuel Reserve Levels As Shipments Approach Mombasa

The National Treasury has moved to calm public anxiety over potential energy shortages, revealing that the country maintains a 16-day buffer of super petrol. Addressing the National Assembly Finance Committee on Thursday, Treasury Cabinet Secretary John Mbadi detailed the current inventory levels, stating that Kenya also holds 19 days of diesel, 49 days of kerosene and jet fuel.

These figures emerge as regional tensions in the Middle East spark concerns regarding the stability of global supply chains. CS Mbadi noted that while the current pricing cycle ending April 14 remains insulated from recent international price hikes, the government is monitoring the situation. He emphasized that additional fuel deliveries are already in the pipeline to replenish the existing stocks at the Port of Mombasa.

Internal data from the Ministry of Energy indicates that as of late March, the country held 138,623 metric tonnes of super petrol and 207,841 metric tonnes of diesel. An additional 290,000 metric tonnes of petrol are expected to arrive shortly, which would provide an additional 47 days of cover. This influx is intended to prevent any localized stockouts that could disrupt transport and construction logistics.

The Cabinet Secretary warned oil marketing companies against hoarding products in anticipation of price shifts. He remarked that even if global costs rise, the government possesses mechanisms to stabilize the impact on consumers. CS Mbadi suggested that the state could activate a portion of the Sh17 billion remaining in the Fuel Stabilisation Fund to cushion the economy for up to three months.

Beyond immediate reserves, the Treasury is exploring structural changes to how fuel is taxed. One proposal involves shifting Value Added Tax from the current percentage-based system to a specific fixed rate per liter. This adjustment would require parliamentary approval but is viewed as a way to maintain revenue predictability while preventing pump prices from spiraling.

President Ruto has previously defended the Government-to-Government procurement framework as a vital shield against external shocks. By sourcing products through established credit arrangements, the state aims to maintain a steady flow of imports despite the volatility seen in the Strait of Hormuz. For now, the government maintains that there is no technical reason for motorists to fill their tanks beyond their usual requirements.

The business owners have been encouraged to maintain normal consumption patterns to avoid creating artificial shortages at the retail level. CS Mbadi noted that panic buying often causes more harm than actual supply disruptions, as it puts unnecessary pressure on the distribution infrastructure.