Kenya Transporters Raise Alarm Over Fuel Shortages, Threatening Logistics Sector
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Kenya Transporters Association (KTA) has released an urgent statement concerning the fuel supply issues being experienced in the country.
It attributes this to rationing and withdrawal of credit by oil marketing companies (OMCs), which is seriously affecting the transportation industry of the country.
Addressing the Government of Kenya, Energy and Petroleum Regulatory Authority (EPRA), Ministry of Energy and Petroleum, and Kenya Pipeline Company, among other stakeholders, KTA highlighted “extreme concern and frustration on the ongoing situation of fuel supply in the country.”
“In recent days, transporters in various parts of the country and particularly those in logistics corridors, have been reporting fuel rationing, rejection of supplying in bulk and total withdrawal of credit facilities by OMCs,” read part of the statement.
According to KTA, these problems have been occurring despite constant reassurances by authorities regarding sufficient fuel reserves in the country.
Disconnect Between Official Communication and Market Reality
KTA highlighted a troubling gap between official statements and the on-ground reality, emphasizing that transporters are unable to access fuel in the quantities necessary to sustain operations.
“This disconnect is severely affecting our members,” said Newton Wang’oo, Chairman of KTA.
“Transporters are facing operational disruptions due to inability to fuel trucks efficiently, increased costs as drivers purchase fuel in small quantities at multiple stations, breakdowns in logistics planning, particularly for long-haul trips, and severe cash flow strains due to withdrawal of credit terms,” Wang’oo lamented through the notice.
The association warned that these challenges not only threaten individual businesses but could also undermine the entire supply chain.
“If the country indeed has sufficient fuel, then the market must reflect this reality immediately and consistently,” Wang’oo added.
Effect on the Economy
The road transport industry, which forms the foundation of Kenya’s economy and intra-regional transportation in the East African Community, finds itself more vulnerable than ever before.
The KTA warns that the disruption could:
- Impede the flow of vital commodities and transit cargo.
- Disrupt logistical operations throughout the nation.
- Jeopardize Kenya’s reputation as a regional logistics base.
- Damage transport companies are already under stress.
Also Read: CS Wandayi Issues New Orders After Ksh 4.8 Billion Fuel Scandal
Demands of KTA and a Call to Action
As stated in the official statement issued by KTA, the organization requested that the government act immediately by providing information on the real fuel stock and issuing instructions to the OMCs so that they can begin the usual process of supplying the transporters and provide the transporters with reasonable credit facilities.
The organization also made a demand that there should be an urgent meeting between the government officials, EPRA, OMCs, and other relevant people in order to sort out this prevailing problem.
“This matter needs to be sorted out immediately, or else it could turn out to be a complete logistics disaster,” KTA emphasized.
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