Govt warns oil companies over fuel hoarding and price manipulation
By Emmanuel Rono, April 10, 2026The Competition Authority of Kenya (CAK) has issued a stern warning to Oil Marketing Companies (OMCs) following reports of fuel hoarding and unconscionable conduct amid concerns over nationwide fuel availability.
The authority noted that the intervention follows growing public discourse and government indications that certain OMCs may be deliberately withholding the supply of essential products, including petrol, diesel, kerosene, and Jet A-1, in anticipation of price increases.
“The Authority has taken note of the ongoing public discourse regarding availability of various fuel products (petrol, diesel, kerosene, and Jet A-1) across the country, as well as statements issued by associations representing the interests of oil marketing companies (OMCs),” CAK notice released on Friday, April 10, 2026, read in part.
Reminder
The Authority reminded market players that fuel is an essential commodity underpinning national economic activity.
Under the Competition Act Cap. 504, any agreements or conduct intended to distort competition or manipulate prices are strictly prohibited.
“Fuel is an essential commodity that underpins economic activity and public welfare. Any deliberate attempt by suppliers, distributors, or retailers of fuel products to withhold supply from the market to create artificial scarcity, manipulate prices, or gain unfair commercial advantage is a prohibited practice under the Act,” CAK stated.
Penalties
The CAK warned that firms found in breach of these regulations face severe consequences, including financial penalties of up to 10 percent of the company’s gross annual turnover in Kenya, imprisonment for a term not exceeding five years, and a fine of up to Ksh 10 million.
“TAKE NOTICE that such conduct may attract a financial penalty of up to 10 percent of an undertaking(s) preceding year’s gross annual turnover in Kenya. Additionally, the undertaking found to have breached the Act is liable, upon conviction, to imprisonment for a term not exceeding five (5) years or to a fine not exceeding Ksh 10 Million,” CAK warned.
Fuel shortage
The Kenya Transporters Association (KTA), in a formal letter dated Wednesday, April 8, 2026, raised an alarm over a growing fuel shortage that is severely disrupting truck operations nationwide, warning of a looming logistics crisis despite government assurances of adequate supply.
“Over the past several days, Transporters across the country, particularly those operating along key logistics corridors, have reported widespread fuel rationing, refusal by marketers to supply in bulk, and a complete withdrawal of credit facilities by oil marketing companies,” KTA said.