Data from the Kenya National Bureau of Statistics (KNBS) reveals that the country's petroleum import bill rose sharply in the first nine months of 2021, fueled by surging crude oil prices in global markets.
Imports from the United Arab Emirates, Kenya's primary supplier of Murban Crude, jumped 98% to Sh122.4 billion in September 2021 compared to Sh61.7 billion in the same period in 2020. Over 70% of these imports consisted of refined petroleum products, making the UAE Kenya's largest source of fuel.
Saudi Arabia also increased exports to Kenya by 38.3% during the period, reaching Sh79.4 billion. KNBS reported that total import expenditures rose nearly 40% in the first half of 2021, reaching Sh484.5 billion compared to Sh350.8 billion in the same period in 2020.
The surge in petroleum imports coincided with a 71.3% increase in Murban crude prices, which rose to $83.20 per barrel in November 2021 from $48.57 in November 2020. A weakening shilling, which reached a record low of Sh112.44 to the dollar, further exacerbated fuel costs.
The Energy and Petroleum Regulatory Authority (Epra) warned that rising international crude prices could lead to higher domestic fuel prices within two months. Director-General Daniel Kiptoo explained that pricing cycles are based on crude oil prices from the preceding month and early days of the following month.
High fuel costs have contributed to a 6.45% inflation rate by October 2021, with consumers facing increased prices for transport and essential goods. The government attributed the import growth to post-pandemic travel recovery and heightened demand for petroleum products.
