Nairobi Fuel Shortage Linked to Port Delays, Sulfur Standard Waivers

Key facts

• Fuel stations in Nairobi are experiencing shortages of petrol and diesel.
• Delays in cargo clearance at the port of Mombasa are a primary cause of the scarcity.
• Vivo Energy, Rubis Energie Kenya, and TotalEnergies Marketing Kenya are among the hardest-hit oil marketers.
• A temporary waiver on maximum sulfur limits for imported diesel and petrol has been enacted.
• The waiver allows higher sulfur fuel levels for six months.
• Nairobi has been working to improve air quality in recent years.
• Higher sulfur fuel increases harmful air pollution, particularly from diesel engines.

Motorists Scramble as Fuel Stations Run Dry

Nairobi's motorists are facing widespread scarcity of petrol and diesel, with many fuel stations running dry. The disruption stems from significant logistical hitches and delays in clearing fuel cargoes at the crucial port of Mombasa. These supply chain snags have left major oil marketers struggling to maintain stock, leading to the intermittent availability of essential fuels across the capital. The situation has prompted panic buying, further exacerbating the pressure on the limited supplies. The three largest oil marketers operating in Kenya – Vivo Energy, Rubis Energie Kenya, and TotalEnergies Marketing Kenya – have been disproportionately affected, contributing to the erratic distribution of both diesel and petrol.

Port Delays Tied to Compliance Certificates

Vessels carrying fuel shipments faced considerable delays over the weekend in obtaining clearance from the Kenya Bureau of Standards (Kebs) to offload their cargo. Efforts to expedite these clearances were reportedly underway by Monday afternoon. Sources indicate that the delays are linked to the absence of Certificates of Conformity (CoC) for some of the vessels. These certificates are vital, attesting to the safety and legality of imported products, and facilitating smooth customs processing. While the immediate issue of clearance delays was reportedly resolved, the underlying cause highlights a compliance challenge that has directly impacted fuel availability for consumers.

Global Supply Chains Under Strain

The current fuel sourcing challenges are exacerbated by broader geopolitical disruptions affecting global energy markets. Kenya imports fuel primarily through Government-to-Government (G-to-G) deals with Gulf companies. However, escalating tensions and conflict involving the US and Israel against Iran have disrupted traditional supply routes. The blockade of the Strait of Hormuz, a critical chokepoint for global fuel transport, and attacks on regional refineries have forced suppliers to seek alternative loading ports in Europe, India, and the Red Sea. These shifts place immense pressure on supply chains, impacting countries worldwide that rely on these routes for their energy needs. The Strait of Hormuz alone accounts for nearly a quarter of global fuel transit.

Sulfur Standard Waiver Sparks Health Concerns

In response to the supply crunch, Kenya has temporarily relaxed its maximum sulfur limits for imported diesel and petrol. This decision, enacted by the Ministry of Investments, Trade and Industry, permits higher sulfur fuel levels for a period of six months. While intended to ensure fuel availability and economic stability, the waiver has ignited significant concern among public health and environmental advocates in Nairobi. The city has made notable strides in recent years towards cleaner air, investing in monitoring systems and developing an Air Quality Action Plan. The relaxation of standards directly impacts these efforts, as higher sulfur fuels release increased levels of harmful pollutants, particularly from diesel engines, which are a major source of air pollution in urban environments.

Public Health Risks Intensify

Nairobi is already grappling with a severe air pollution crisis, with particulate matter levels far exceeding World Health Organization (WHO) guidelines. An estimated 2,500 premature deaths annually are linked to air pollution in the city. Victor Nthusi, a Consulting Research Fellow with HEI’s Global Health Program, warns that the higher sulfur content in fuel can rapidly affect public health. "Higher sulphur fuel increases harmful air pollutants that can trigger breathing difficulties, asthma attacks, and other respiratory problems," he stated. Even a temporary increase in pollution poses a significant risk, potentially leading to more hospital visits and placing vulnerable populations, such as those with pre-existing respiratory conditions, at greater risk. This decision threatens to reverse progress made in improving the air Nairobi residents breathe.

Economic Costs of Poor Air Quality

Beyond the immediate health implications, the economic consequences of poor air quality are substantial. Increased healthcare expenditures, reduced worker productivity, and long-term strain on public health systems represent significant financial burdens. Research consistently indicates that the cost of addressing air pollution, through preventative measures and stricter standards, is often far less than the economic impact of inaction. The current waiver, while aiming for short-term economic stability, may incur greater long-term financial costs through increased health burdens. The decision underscores a complex balancing act between immediate energy supply needs and the sustained commitment to public health and environmental quality.

The bottom line

• Fuel scarcity in Nairobi is driven by logistical delays at the port of Mombasa and global supply chain disruptions.
• Major oil marketers are experiencing stock-outs due to difficulties in clearing fuel cargoes.
• A six-month waiver on higher sulfur fuel standards has been implemented to address supply issues.
• The waiver raises public health concerns, as higher sulfur fuels increase harmful air pollution.
• Nairobi has been actively working to improve its air quality, making the waiver a step backward.
• The economic costs of poor air quality, including healthcare and productivity losses, often outweigh prevention costs.