Sharp Daily
No Result
View All Result
Monday, October 6, 2025
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home News

The real price of Israel – Iran Conflict for Kenya.

Brian Otieno by Brian Otieno
June 19, 2025
in News
Reading Time: 2 mins read

As the we watch the escalating tensions between Israel and Iran, Kenya might feel distant from the Middle East battle ground, though  in reality, we are far from immune. While diplomatic and security concerns dominate international headlines, one major area where this conflict threatens Kenya directly is energy and fuel prices, a sector already making Kenyans feel the pinch and is also sensitive to external shocks.

Kenya’s June 2025 fuel pricing report from the Energy and Petroleum Regulatory Authority (EPRA) shows a fragile balance. Super Petrol prices rose slightly by KES 2.7, while Diesel and Kerosene prices dropped marginally by KES 2.0 each. Behind this seeming stability lies a mix of temporary factors: global fuel prices have declined slightly, the Kenyan Shilling has held steady at KES 129.2 against the dollar, and the government has continued its Petroleum Pump Price Stabilization program spending  KES 9.9 billion in 2023/24 alone to cushion consumers.

However, this calm could be short-lived as the conflict has the potential to disrupt global oil supply routes. Any escalation involving strikes on refineries, oil tankers could cause a rapid surge in crude oil prices and for a net oil importer like Kenya, this would be disastrous.

Our fuel prices are already among the highest in East Africa, and the government’s price stabilization mechanism is both expensive and limited in how long it can shield Kenyans. A sharp spike in global prices, driven by conflict in the Middle East, would force Kenya to either absorb higher subsidies or pass those costs to consumers, leading to higher pump prices, fare hikes, and increased inflation.

RELATEDPOSTS

The Role of Micro-Pensions Plans in Kenya

October 3, 2025

Understanding the link between international aid and cooperative finance stability in Sub-Saharan Africa

October 3, 2025

Fuel touches every part of the economy. From matatus to manufacturing, agriculture to electricity generation, any increase in petroleum prices will affect the cost of living and doing business disrupting economic stability.

Moreover, the currency stability Kenya currently enjoys thanks to improved forex reserves could be tested. Rising oil import bills will put pressure on the shilling, making imports costlier and potentially reversing recent gains in inflation control.

Kenya must therefore take this conflict seriously, by  proactively diversify fuel sourcing, enhance strategic petroleum reserves, and invest in alternative energy to reduce reliance on volatile global markets. Additionally, regional trade and transport systems should be prepared for ripple effects if global shipping is disrupted.

Previous Post

Resilient but strained: Kenyan firms speak out in May 2025 CEO survey.

Next Post

It’s Parliament vs Treasury on the battle over zero-rated essentials.

Brian Otieno

Brian Otieno

Related Posts

News

Kenya Q2’ 2025 GDP growth accelerates to 5.0%

October 3, 2025
News

Argentina’s crisis and Kenya’s lessons on political economy and market confidence

September 25, 2025
News

Kenya’s financial system remains stable but faces rising risks

September 25, 2025
News

Where do Kenyan stock returns come from? A napkin framework

September 19, 2025
News

September snapshot: CMMF yields 13.12% as month unfolds

September 5, 2025
Private equity investment business concept
News

Private equity and insurance

September 4, 2025

LATEST STORIES

The Role of Micro-Pensions Plans in Kenya

October 3, 2025

Understanding the link between international aid and cooperative finance stability in Sub-Saharan Africa

October 3, 2025

Kenya Pipeline Company IPO

October 3, 2025

Kenya Q2’ 2025 GDP growth accelerates to 5.0%

October 3, 2025

Kenya’s Regulated SACCOs Cross Trillion Shilling Mark

October 2, 2025

Post-September review: What CMMF did and what’s next

September 26, 2025

Strengthening water utilities through efficiency and accountability

September 26, 2025

Retirement Benefits Schemes Trustee Governance in Kenya

September 26, 2025
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024