Kenya has temporarily lowered diesel and gasoline quality standards to ease challenges in sourcing fuels because of the US-Iran war in the Middle East.
Sulphur limits for gasoil and gasoline have been lowered to 50ppm from the 10ppm for six months from 1 May, according to Kenya's ministry of investments, trade and industry. The measure is introduced to ensure the stability of fuel imports while sourcing higher quality fuels proves difficult. It also allows Kenya to choose from a wider range of fuel suppliers.
The policy will be reviewed at the end of the six-month period, or earlier if global supply conditions improve, the ministry said.
This comes just a month after Kenya's energy ministry ordered the re-export of a gasoline cargo that may not have met regional fuel standard. The cargo was imported outside of the government-to-government agreements between Kenya and Mideast Gulf NOCs, under which Kenya sources majority of its diesel, gasoline and jet fuel from the Saudi state-controlled Aramco, and the UAE's state-owned Adnoc and Enoc.
But supply security on this route has significantly deteriorated since Iran's de facto closure of the strait of Hormuz in March locked in Mideast Gulf production. Kenya sourced around 66pc of its diesel and 24pc of its gasoline imports from the Gulf in 2025, but received none of either from that region in April according to Kpler data.
Kenya's reversion to importing lower quality fuels mirrors efforts of the wider east African region to ensure supply stability. Fuels have been arriving from unusual supply regions like the US or Nigeria to replace lost supplies from the Middle East, but this in turn reflects in higher retail prices.
Diesel and gasoline prices surged in the latest monthly fuel price review done by Kenya's energy and petroleum regulatory authority EPRA on 14 April. The diesel price rose by 24pc on the month to 206.84 Kenyan shillings/l ($1.59/l), while gasoline price rose by 16pc to KSh206.97/l. EPRA cited the cost of imported products, which they said had risen by as much as 68pc for diesel and 42pc for gasoline between March and April. The price increase already accounts for the government's decision to cut value added tax on both fuels to cushion consumers from the price surge.
"The ministry [of energy and petroleum] wishes to reassure Kenyans that country has adequate fuel stocks and there should be no cause for alarm", said Kenya's cabinet secretary Opiyo Wanday on 6 May. But the country may struggle to replace all lost supplies from the Mideast Gulf if the closure of the strait of Hormuz continues.
