CAK Warns Oil Firms Over Hoarding as Fuel Shortages Hit Kenya

By Benadeta Mwaura - Reporter

Kenya, April 10, 2026 - Kenya’s competition regulator has issued a stern warning to oil marketing companies amid growing concerns over fuel shortages, accusing some players of hoarding petroleum products to manipulate prices and create artificial scarcity.

The Competition Authority of Kenya (CAK) said it is closely monitoring the market following widespread reports of dry petrol stations, rationing and long queues across parts of the country.

In a strongly worded statement, CAK cautioned that any deliberate attempt to withhold fuel supply to influence prices or gain unfair advantage violates Kenya’s competition laws.

“Any deliberate attempt… to withhold supply… to create artificial scarcity… is a prohibited practice,” the Authority said.

The regulator warned that companies found culpable risk fines of up to 10 percent of annual turnover, or penalties of up to Sh10 million and possible imprisonment.

Preliminary findings suggest some firms may be restricting supply to independent fuel retailers in anticipation of an expected price increase, effectively tightening supply at the pump.

The warning comes even as the Energy and Petroleum Regulatory Authority (EPRA) maintains that Kenya has sufficient fuel stocks.

According to government's previous data, the country currently holds 16 days of petrol, 19 days of diesel, and 49 days of jet fuel and kerosene, which are close to depletion, especially for Petrol.

However, the situation on the ground tells a different story, with motorists reporting difficulty accessing fuel and some stations either running dry or limiting sales.

In several towns, long queues have formed as supply disruptions bite, affecting transport, logistics and small businesses.

The unfolding situation cannot be separated from global events. Kenya’s fuel supply chain remains heavily dependent on imports routed through the Middle East, where geopolitical tensions, particularly around the Strait of Hormuz, have disrupted shipments.

Recent reports indicate that up to 20 percent of fuel retailers in Kenya have already been affected by supply constraints, raising fears of a broader crisis if disruptions persist.

Analysts say the global supply shock is now being compounded by local speculative behaviour, where traders anticipate price increases and withhold stock to maximise margins.

As always, the impact is being felt most sharply by ordinary Kenyans.

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Public transport operators are facing rising costs and uncertainty

Small businesses are reliant on fuel-powered logistics are disrupted

And households already struggling with the cost of living face further pressure

For many, the fuel shortage is not just an inconvenience; it is a direct economic shock that affects daily survival.

The crisis exposes the fragility of Kenya’s fuel supply system, which relies heavily on Imported petroleum, centralised supply agreements, and price controls that may distort market behaviour

When global disruptions meet local speculation, the result is a perfect storm of shortages, panic buying, and price pressure.

For CAK and EPRA, the situation presents a critical test of regulatory enforcement.

While EPRA controls pricing and supply frameworks, CAK’s role in policing anti-competitive behaviour is now in sharp focus. The agencies have indicated they will work together to investigate and take action where necessary.

The warning by CAK highlights a deeper structural issue: Kenya’s vulnerability to both external shocks and internal market manipulation.

As the Middle East crisis continues to disrupt global energy flows, local actions, such as hoarding, risk amplifying the problem, turning supply strain into a full-blown crisis.

For policymakers, the challenge will be not only to stabilise supply in the short term, but also to address systemic weaknesses in the fuel market.