CS John Mbadi Outlines Government Strategy To Counter Hefty Oil Prices

Treasury Cabinet Secretary John Mbadi has credited a strategic agreement with oil marketers for shielding Kenyan consumers from the full impact of surging global oil prices. Speaking during an interview on Ramogi TV on Wednesday, May 13, Mbadi explained that the government negotiated a uniform arrangement for fuel importation and transport costs, which has acted as a critical stabilizer for local pump prices.

According to the Cabinet Secretary, without this intervention, fuel costs in Kenya would have reached unsustainable levels. He highlighted that the agreement specifically addressed transport logistics, ensuring that even as external pressures mounted, the domestic cost of moving fuel remained fixed. “Fortunately, we agreed on uniform transport costs,” Mbadi stated, noting that if these costs had been allowed to rise alongside global trends, the price at the pump would have skyrocketed.

Mbadi’s message to Kenyans

Despite these efforts, Mbadi warned that Kenya remains highly vulnerable to international shocks because it is entirely dependent on imported petroleum. He pointed to the ongoing conflict in the Middle East as a primary driver of instability, noting that the closure of the Strait of Hormuz—a vital maritime artery for global oil—has severely disrupted supply chains. The CS noted that these geopolitical tensions have forced importers to source products from more distant markets, further complicating the logistics of keeping Kenya fueled.

Mbadi also defended the government-to-government fuel importation framework, arguing that it has helped maintain a predictable shipping schedule and absorbed some of the immediate economic pressure. However, he maintained a realistic tone regarding the limits of government control. “The global fuel prices have doubled, and if they increase out there, we must also increase them here in Kenya,” he added, emphasizing that while domestic agreements can soften the blow, the country cannot entirely decouple itself from the realities of the global energy market.