Competition Authority cautions oil companies over alleged hoarding of fuel

The Competition Authority of Kenya has cautioned oil marketing companies over alleged hoarding of fuel products, warning that those found culpable risk heavy penalties, including fines and possible imprisonment.

The Authority, in a statement on Friday, said it was aware of the ongoing public discourse regarding the availability of petrol, diesel, kerosene and Jet A-1 across the country, alongside statements from associations representing oil marketing companies.

“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,” the Authority Director-General David Kemei said.

The Authority further noted that firms found to have breached the law risk imprisonment of up to five years or a fine not exceeding Ksh.10 million.

Citing key provisions of the Competition Act, CA warned that the law prohibits agreements or decisions that prevent, distort or lessen competition, unless exempted. It also pointed to stipulations, which bar undertakings from imposing dissimilar conditions on equivalent transactions, placing trading parties at a competitive disadvantage.

Additionally, Section 21(3)(i) prohibits conduct that restricts competition, while Section 57 outlaws unconscionable conduct in business transactions involving the supply of goods and services.

While affirming its mandate to investigate anti-competitive conduct, the Authority acknowledged the oversight role of the Energy and Petroleum Regulatory Authority, noting that it will continue to monitor the situation in collaboration with the sector regulator.

Kemei said the Authority will engage EPRA as necessary under the existing cooperation framework to address the situation.

EPRA this week warned oil marketing companies against hoarding petroleum products and inflating wholesale prices, following reports of a countrywide artificial fuel shortage. 

Preliminary investigations by the regulator revealed that some oil marketing companies are deliberately withholding supplies from non-franchised retailers, commonly known as independents, in anticipation of a price increase.

The directive followed countrywide complaints by motorists about long queues at fuel stations as concerns mount over supply disruptions and possible price hikes following the Middle East crisis pitting Iran against the United States and Israel. 

To quell the fears of fuel shortage, Treasury Cabinet Secretary John Mbadi recently stated that the current stock levels stand at 16 days for petrol, 19 days for diesel, and 49 days for jet fuel and kerosene, providing short-term cover as additional shipments arrive in April.

"Our suppliers, especially the ones we have a G2G arrangement with, are actually loading from other areas that are not affected like Europe and India," Mbadi told the National Assembly's Budget & Appropriations Committee on April 2, 2026.