FUEL CRISIS DEEPENS: NAIROBI STATIONS RUN DRY AS OIL MARKETERS ACCUSED OF HOARDING AMID IRAN WAR SHOCK

By Maa Tribune Business Desk | March 24, 2026 | BUSINESS

Kenyans woke up this Tuesday morning to a worsening fuel crisis gripping Nairobi and several other counties, with petrol stations running dry, motorists stranded in long desperate queues and shocking allegations of black market fuel sales emerging from the city's streets  even as the government insists there is nothing to panic about.

The crisis, which has been building over the past week, exploded into full public view on Tuesday morning as drivers in Westlands, Kilimani, Langata Road and other parts of Nairobi reported visiting as many as five petrol stations in a row and finding them all empty or refusing to sell.

The Scenes on Nairobi's Streets

The frustration on the ground is raw and very real. Steve Wakio, a taxi driver based in Westlands, described a frantic morning of criss-crossing the city searching for fuel. A fellow motorist in Kilimani told journalists he had been flatly refused service at one station  only to watch the same attendant immediately fill up a high-end vehicle that pulled up minutes later.

"Tell me why a fuel attendant at a petrol station within Kilimani refused to sell to me but fueled a posh vehicle that came just after I had left," he said angrily, pointing to what appears to be a disturbing pattern of selective, discriminatory selling.

In Karuna Close, Westlands, taxi driver Jerome Okumu said dealers were operating a brazen back-door black market. "Someone told me to send money if I want 20 litres. He is selling at Sh2 above current prices," Okumu revealed, describing what is rapidly becoming an underground fuel economy in the city.

Along Langata Road  one of Nairobi's busiest commuter corridors  multiple stations have run dry entirely, with the few still dispensing fuel reporting queues stretching hundreds of metres.

Government Says There Is Enough Fuel — But Reality Says Otherwise

The Ministry of Energy and Petroleum has moved to calm the public. Petroleum Principal Secretary Mohamed Liban confirmed on Monday that the country received over 100 million litres of super petrol as of Thursday March 19  enough to last at least two weeks and blamed the shortages entirely on hoarding by oil marketers who are sitting on their stocks, gambling that prices will spike and they can sell at higher rates.

"We have sufficient stock in the country. In the run-up to the weekend, we have seen a daily rise in petrol prices over the last two weeks because of speculation and panic buying," Liban said in a statement delivered during a live broadcast interview.

The Energy and Petroleum Regulatory Authority has been directed to force oil marketers to release their hoarded stocks immediately and resume normal supply. However, as of Tuesday morning, the situation on the ground showed little sign of easing.

The Iran War Driving Global Oil Chaos

The crisis has its roots far beyond Kenya's borders. The ongoing US-Iran war has sent global oil markets into a tailspin not seen since the 1970s oil shocks. Crude oil prices have rocketed from around $70 per barrel before the conflict began to over $113 per barrel as of Monday, with analysts warning it could hit $120 this week if the United States follows through on threats to strike Iranian power infrastructure.

The effective closure of the Strait of Hormuz  the narrow but critical waterway through which a massive share of the world's oil exports flow  has sent shipping routes into chaos, forcing vessels to take longer and far more expensive alternative routes. Of roughly 60 vessels expected to arrive at Kenyan ports over a two-week window, only two tankers are currently carrying petroleum products.

Making matters worse, Saudi Arabia has slashed its oil supplies to major Asian refining economies including India, China, South Korea and the UAE for the second consecutive month. India alone is set to receive over three million fewer barrels in April. Since Kenya imports most of its refined fuel from these Asian refineries  not directly from crude producers  a supply crunch in Asia translates directly into a supply crunch at Kenyan pumps.

North Rift Farmers Hardest Hit

While urban Nairobi motorists face frustration, the crisis is hitting hardest in the North Rift. Across Eldoret, Kitale, Kapsabet, Bungoma and parts of West Pokot, diesel has dried up almost entirely at filling stations — with devastating timing. Farmers are in the middle of the planting season and depend entirely on diesel-powered machinery to prepare their land.

"The unexpected fuel shortages have significantly affected our operations," said Thomas Kwambai, a large-scale farmer near the Elgeyo border, as equipment sat idle in fields waiting to be ploughed.

At the Port of Mombasa, early warning signs are multiplying. Fuel transporters say they have been alerted to possible shortages at the Shimanzi petroleum depot in the coming days, particularly if incoming vessels fail to dock and offload on schedule.

What It Will Cost You

For ordinary Kenyans, the fuel crisis threatens to cascade rapidly into a broader economic crisis. Fuel is the engine of Kenya's economy  it drives public transport, moves food from farm to market, powers small businesses and keeps the supply chain running. Any sustained shortage or sharp price spike will hit transport costs, food prices and the cost of virtually every good and service in the country.

The Kenya shilling faces additional pressure as oil importers scramble for US dollars to pay for fuel, pushing up demand for hard currency at a time when export earnings from tea and other agricultural products face disruption as Middle East buyers reduce purchases.

Energy Cabinet Secretary Opiyo Wandayi has maintained publicly that Kenya's fuel supply remains secure. The government is in active contact with its G-to-G supply partners  Saudi Aramco, ADNOC and ENOC to activate contingency plans. But with the global situation changing by the hour, Kenyans filling their tanks this Tuesday are not taking any chances.

Maa Tribune will keep tracking this story as it develops. Follow us on Twitter @maatribune.