Report: Fuel imports rose 12.2pc in 2025 on increased demand
Business
By
Esther Dianah
| May 02, 2026
Kenyans consumed more petroleum products in 2025, as global crude oil prices declined, with retail fuel sales at the pump increasing significantly.
As a net importer of fuels, Kenya imported 5.5 million tonnes of petroleum products last year, a 12.2 per cent increase over the previous year.
Currently, Kenya lacks strategic reserves for an important commodity such as fuel.
The country spent a total of Sh528.8 billion on the import of petroleum products in 2025 as a result of low crude oil prices on international markets. This was a significant decline from the Sh575.5 billion import bill in 2024.
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The government of Kenya has been criticised for lacking strategic fuel reserves to act as buffers against external shocks, such as the escalating tensions in the Middle East, which have seen a spike in global fuel prices and have consequently percolated in Kenya.
With Murban crude oil prices seeing a significant volatile upsurge as a result of the US-Iran-Israel conflict, oil experts aver that the fuel crisis seen in the previous months may get worse before it stabilises.
They opine that the government should consider open market sourcing for fuel and establish oil reserves to last up to 90 days, instead of the current 21 days. As contained in the Petroleum Act of 2019.
“The country should maintain strategic fuel reserves as buffers against external shocks. Currently, there are none, and the country relies on monthly consignments, leaving it exposed,” said Patrick Muinde, an economist.
The Economic Survey 2026 shows crude oil prices declined in 2025.
The report shows that the average Murban crude oil price was $79.86 per barrel in 2024 before it fell to $69.63 per barrel in 2025.
This figure has, however, seen a significant jump in the first quarter of 2026 as a result of geopolitical tensions seen in the Gulf.
In 2025, Kenyans consumed a total of 5.7 million tonnes of petroleum fuels in the country. This as demand for fuels in the country, which rose to 5.7 tonnes.
The fuel prices in the country remained relatively stable in 2025 as a result of the decline in crude oil prices. In the month of April 2026, inflation jumped 5.6 per cent, a 1.2 per cent increase from 4.4 per cent recorded in March. Treasury Cabinet Secretary John Mbadi has said that fuel prices are a risk factor for inflation in the country.
He warns that inflation may reach new highs in May due to geopolitical disruptions in the Middle East.
“Inflation increased from 4.4 per cent in January, 4.3 per cent in February, 4.4 per cent in March, and now 5.6 per cent in April, with the possibility that it can go a little higher in May,” said Mbadi.
He noted that government intervention to reduce VAT on fuel from 16 per cent to 8 per cent and to pump Sh6.2 billion into a stabilisation fund has eased fuel prices at the pump.
“Whether the government admits it or not, we might face a crisis if we don’t look at the risks around the G-2-G (government-to-government) arrangement,” said economist Patrick Muinde, noting that public assurance is critical now.
“We cannot rely on fuel access at the whim of peace in the Middle East. We must ensure that our economy is shielded from direct shocks,” said Martin Chomba, the chairman of the Petroleum Outlets Organisation.