Fuel Price Surge Sparks Call for Strategic Reserves in Kenya

 A sharp rise in fuel prices has triggered fresh calls for long-term policy measures to shield Kenya’s economy from global energy shocks, with business leaders urging the government to establish strategic fuel reserves.

Peter Macharia Kamau, Managing Director and CEO of Jijenge Credit Limited, raised concerns following a 25 percent increase in fuel costs, warning that the impact will ripple across key sectors including transport, manufacturing, and small and medium-sized enterprises (SMEs).

He noted that fuel remains a central driver of economic activity, and any significant price increase inevitably raises operational costs for businesses, which are often passed on to consumers through higher prices of goods and services.

Kamau acknowledged ongoing government efforts to stabilize the economy but emphasized the need for more proactive and forward-looking strategies to manage fuel supply and price volatility.

Among his key recommendations is the creation of a national strategic fuel reserve capable of sustaining the country for at least six months during periods of global supply disruptions or price instability.

According to him, such a reserve would strengthen Kenya’s energy security, reduce vulnerability to external shocks, and provide a buffer against unpredictable global market dynamics.

He further highlighted that building energy resilience is essential not only for protecting businesses but also for safeguarding household incomes and maintaining overall economic stability.

The remarks come amid rising global energy prices that continue to strain emerging economies, underscoring the urgency for sustainable and strategic interventions in the energy sector.