Due to government delays in paying subsidies meant to keep the price of gasoline low, oil marketers in Kenya have warned of fuel shortages. The companies are reportedly owed KES65bn (US$542m) for supplying fuel for the three months since June. These companies are supposed to be paid monthly. According to industry executives, “the impact on oil marketing companies is so substantial that they will face immense financial constraints to be able to continue with uninterrupted supply.” The threat of fuel shortages comes just months after Kenya suffered its worst fuel crisis in a decade and could further drive inflation pressures in the economy. The government has spent KES118bn to subsidize fuel prices since April 2021, and it plans to end the programme by December, given that the spending is not sustainable as debt rises.
