The Unspoken Wholesale Row Threatening to Shut Down 40% of Kenya’s Petrol Stations

A quiet but vicious pricing war behind the scenes is on the verge of paralyzing Kenya’s transport sector.

Independent oil dealers are threatening a total shutdown of their stations starting tomorrow.

The crisis stems from a bitter row over wholesale prices that could leave millions of motorists stranded.

While major multinational brands dominate city centers, independent stations form the actual backbone of Kenya’s fuel distribution.

These local dealers run over 40% of the country’s retail petrol stations, keeping rural areas and major highways moving.

Because they lack direct import licenses, these small stations must buy their fuel in bulk from large Oil Marketing Companies (OMCs).

Now, the two main independent bodies—POAK and KIPEDA—have ordered a total freeze on wholesale fuel purchases.

If their members stop buying fuel tonight, nearly half of the petrol stations in the country will go dark by morning.

The conflict boils down to a massive squeeze on profit margins that has left independent dealers operating at a complete loss.

Under the current pricing cycle, the Energy and Petroleum Regulatory Authority (EPRA) capped Nairobi wholesale costs at Ksh 211.80 for petrol.

EPRA also set the maximum wholesale price for diesel at Ksh 212.60 to protect the local supply chain.

However, independent dealers reveal that major oil cartels are completely ignoring these legal limits at the depots.

Large suppliers are allegedly overcharging small stations for bulk fuel, wiping out their slim retail profit margins entirely.

Dealers argue that they cannot afford to buy overpriced wholesale fuel when they are legally forced to sell it under strict retail caps.

The associations gave the Ministry of Energy and EPRA a 12-day ultimatum to crack down on these predatory wholesale prices.

With that window closing without government enforcement, independent stations say a strike is their absolute last resort.

Minor shortages are already creeping into estate pumps in Nairobi and farming hubs across the North Rift as stocks dry up.

Energy Cabinet Secretary Opiyo Wandayi maintains that national stocks are safe, but motorists are topping up tonight just in case.

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