Treasury CS John Mbadi has warned that Kenya is facing a serious transport disruption driven by a global fuel supply shock, cautioning that the situation reflects wider geopolitical and energy market instability rather than domestic policy failures alone.
Speaking on the ongoing strike that has paralyzed parts of the transport sector, Mbadi described the situation as “a big crisis,” noting that disruptions in fuel supply and pricing are now directly affecting mobility, logistics, and economic activity across the country.
He stressed that the government is concerned about the scale of disruption being experienced, especially in urban transport systems and freight operations.
Mbadi Says Crisis Driven by Global Energy Market Instability
However, the Treasury CS emphasized that the crisis must be understood in its global context.
According to him, high fuel prices are part of a broader international challenge affecting both developed and developing economies.
He pointed to recent high-level discussions during engagements with global financial institutions, including the World Bank and the IMF, where energy security dominated much of the agenda.
Mbadi highlighted concerns that the world could be heading toward a deeper fuel supply shock linked to geopolitical tensions and disruptions along key maritime routes.
He cited risks surrounding the Strait of Hormuz, a critical global oil transit corridor through which a significant portion of global crude oil flows. Any instability in such regions, he noted, has a direct ripple effect on global prices.
“The closure or disruption of key supply routes has serious implications for global oil supply,” Mbadi observed, adding that approximately 20% of global oil passes through strategic channels that are highly vulnerable to conflict-related disruptions.
Africa and Kenya Exposed to External Fuel Price Shocks
He warned that Africa, including Kenya, is particularly exposed because most of its refined fuel imports originate from these affected regions.
The Treasury CS further noted that the combination of external shocks and local distribution challenges has intensified pressure on transport operators, contributing to industrial action and service paralysis in parts of the country.
