Kenya could face higher fuel prices and transport costs after shipping traffic through the Strait of Hormuz dropped sharply, raising concerns over imports from the Gulf.
Reuters data showed only seven vessels passed through the route on Thursday, down from a 10-day average of 15, while Yemen’s Houthi rebels reportedly gained full control of the country’s Red Sea coast.
The developments threaten supplies of fuel, fertiliser, industrial chemicals and other imports that Kenya sources from or through the Gulf region. The Kenya Association of Manufacturers (KAM) said previous disruptions saw freight costs surge by more than 30%, with delivery times doubling from 28 to nearly 60 days.
The pressure is already reflected in inflation, which reached 6.6% in August, while transport inflation remained above 15% for the fourth consecutive month.
Industry players warn fuel prices could rise further from October as global refined fuel prices increase and the Petroleum Development Levy subsidy fund comes under strain.
In Nairobi, current maximum retail pump prices announced by the EPRA are Ksh214.03 for super petrol, Ksh217.86 for diesel, and Ksh191.38 for kerosene
