CS Wandayi: G-to-G fuel deal has led to stability in oil prices
By Mabonga Makhanu, May 29, 2026Energy Cabinet Secretary Opiyo Wandayi has defended the government-to-government (G2G) fuel procurement framework, saying it has played a key role in stabilising fuel prices in the country despite ongoing global market fluctuations.
While speaking during a press briefing on Friday, May 29, 2026, at the energy headquarters in Nairobi during the welcoming of the new petroleum principal secretary, Wandayi said the arrangement has helped Kenya manage fuel supply more predictably and avoid extreme price shocks that have affected other markets.
“Additionally, we continue to benefit from the stability of the G2G framework in pricing. In that regard, our freight and premium costs remain relatively stable. Let me explain this again: freight and premium are key components of the landed cost in Mombasa,” Wandayi stated.
He noted that under the G2G system, key cost components such as freight and premium charges have remained relatively stable, shielding the country from volatility in international shipping and insurance costs that often push fuel prices higher.
He explained that while global benchmark prices continue to fluctuate, the stability of freight and premium costs has been a major advantage for Kenya.
Wandayi added that freight and premium charges form a significant part of the landed cost of fuel in Mombasa, and keeping them fixed under the framework has allowed Kenya to benefit from cost predictability even during periods of global disruption.
He pointed out that Kenya’s freight and premium costs currently stand at about Ksh10,140 per tonne for diesel, Ksh10.9k per tonne for petrol, and Ksh12.6k per tonne for jet fuel, figures he contrasted with open market systems where the same costs have risen as high as 250 to 300 US dollars per tonne.
He further argued that this stability has helped cushion Kenyan consumers from sharper fuel price increases seen in other countries exposed to open-port procurement systems.
According to him, the framework has not only stabilised pricing but also ensured consistent fuel availability, preventing shortages that have affected parts of the region and beyond.
Fuel supply
Wandayi maintained that Kenya’s fuel supply remains secure, stable, and well managed, with shipments arriving on schedule and storage levels at the port of Mombasa and inland depots remaining steady.
He said distribution across the country has continued without interruption, attributing this reliability to the structured nature of the G2G system.
Global pressure
He also highlighted early signs of easing pressure in global energy markets, pointing to shifting demand patterns and improved supply routes that could gradually stabilise international prices.
However, he cautioned that the market remains unpredictable, even as current trends appear encouraging.
Wandayi reiterated that the government remains committed to ensuring reliable, accessible, and affordable energy for Kenyans, saying the G2G framework has provided a buffer against global shocks while supporting both supply stability and price management.