Principal Secretary for the State Department of Industry, Juma Mukhwana, stated that Kenya’s fuel supply will remain stable in the short term despite growing global uncertainties affecting trade and logistics.
Speaking during an interview on NTV on March 24, PS Juma Mukhwana said the country is currently receiving adequate fuel supplies, supported by the ongoing offloading of shipments at the Port of Mombasa.
However, Mukhwana acknowledged that Kenya’s export sector has already taken a hit, with weekly losses estimated at KSh800 million to KSh1 billion due to disruptions in key international markets.
“For now, we are still expecting a normal supply of fuel because of the ships offloading in Mombasa,” he said.
“How much have we been hit? Definitely in terms of exports. And we have been sharing this with a chamber. As I said, we are losing about Ksh800 to Ksh1 billion a week.”
He pointed to the Middle East as a critical logistics hub for Kenya’s exports, noting that countries such as the United Arab Emirates play a significant role not just as end markets but also as redistribution and processing centres for goods like coffee.
PS Juma Mukhwana Reports Fuel Imports Hold Steady Amid Rising Export Losses
The PS explained that rising risks, including increased shipping insurance costs, have made it harder for businesses to move goods to international markets.
He noted that while the current situation presents immediate challenges, it is also triggering a shift in strategy, with stakeholders increasingly exploring direct trade routes into Africa and alternative logistics channels.
PS Juma Mukhwana added that the disruptions have exposed vulnerabilities in global supply chains, particularly the heavy dependence on the Middle East as an intermediary hub for goods destined for African markets.
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He said ongoing discussions among policymakers and industry players are now focusing on strengthening Africa’s own logistics capacity to reduce reliance on external hubs.
Despite the short-term economic strain, Mukhwana said the evolving dynamics could ultimately position Kenya and the broader African region for more resilient, self-sufficient trade systems.
Currently, over 3,200 vessels are stranded at the Strait of Hormuz, representing about 20 percent of global oil and cargo shipments.
Also Read: Frustrations as Kenyan Petrol Stations Start Rationing Fuel Ahead of EPRA Review
Kenya Explores Alternative Markets
On March 24, Cabinet Secretary for Investments, Trade, and Industry, Lee Kinyanjui, confirmed that the government is seeking alternative markets for Kenyan produce affected by the ongoing conflict in key export regions.
CS Kinyanjui said efforts are underway to redirect part of the produce that may be stranded due to the war to other international markets, including countries in Africa, Asia, and the United States.
Kinyanjui also noted that Kenya’s diplomats and trade attaches worldwide have been mobilized to identify opportunities to reroute exports and ensure produce reaches new markets efficiently.
