Senators Give Energy Ministry 12 Months for Six-Month Strategic Oil Reserve Plan

Senators have given the Ministry of Energy and Petroleum 12 months to develop a framework for a national strategic oil reserve. The reserve should hold at least six months of the country’s fuel consumption.

The Senate Standing Committee on Energy said the framework must be developed in collaboration with the National Treasury and other relevant agencies. It should be anchored on the National Oil Corporation of Kenya.

The plan is expected to set out how the reserve will be financed, how fuel stocks will be rotated, and the governance and accountability measures required to manage it.

The recommendations form part of a committee report on alleged irregularities in Kenya’s fuel supply chain. The issues emerged in March amid disruptions to global energy supplies linked to instability in the Middle East.

Senators said the government should prioritise the restructuring and recapitalisation of the National Oil Corporation of Kenya. This would strengthen its role in securing the country’s energy supplies.

The committee wants the corporation to take a central role in acquiring, managing and maintaining strategic petroleum reserves. This includes developing and operating storage facilities either independently or through public-private partnerships.

“The Government prioritises the restructuring, recapitalisation, and strengthening of the National Oil Corporation of Kenya as the country’s strategic national petroleum entity, with a clear mandate to support national energy security objectives,” the committee said.

Senators also want the Energy Ministry to make use of the planned Dangote refinery in Mombasa. The facility could expand petroleum storage capacity and strengthen the country’s strategic reserves.

They said it could also help improve regional fuel supply security and reduce Kenya’s vulnerability to future disruptions caused by external shocks.

The 12-month timeline gives the ministry a clear deadline to present a workable framework for the long-discussed strategic reserve.