Published on 4/19/2026
Kenya has officially requested emergency financial support from the World Bank to protect its economy from the severe repercussions of the Iran war, which Central Bank Governor Kamau Thogi revealed to Reuters on the sidelines of the spring meetings of the International Monetary Fund and World Bank in Washington.
Thuggi described the request as “extremely important” without disclosing specific numbers, noting that this financing will be added to a separate budget support loan that Nairobi and the World Bank were negotiating before the outbreak of the crisis. It is noteworthy that the term “rapid response support” is used by the international organization to express a rapid disbursement financing mechanism, designed to help countries confront crises and economic shocks.
The roots of this crisis go back to the war that broke out on February 28, when the United States and Israel launched strikes on Iran. Tehran responded by disrupting the movement of tankers in the Strait of Hormuz, through which about a fifth of global oil supplies pass, causing the price of Brent crude to rise sharply, exceeding $110 per barrel.
Kenya is considered a completely oil importing country, as every increase in the price of diesel or gasoline leads to an increase in the costs of food distribution, manufacturing inputs, and electricity generation, which creates cumulative pressure on families and small and medium enterprises.
Kenyan Finance Minister John Mbadi acknowledged that Kenya’s oil reserves do not exceed 16 days of gasoline, and that the country imports most of its oil products under government agreements with Saudi Aramco and the UAE’s ADNOC.
On April 14, the Energy and Petroleum Regulatory Authority was forced to raise fuel prices. In the face of this shock, President William Ruto signed a law reducing the value-added tax on petroleum products from 13% to 8% for a period of 3 months, with the aim of relieving pressure on consumers.
On the monetary front, on the eighth of this month, the Central Bank of Kenya froze the interest rate at 8.75%, in a move that reflects its assessment of the extent of the oil repercussions. The Central Bank Governor confirmed that cash reserves amounted to 13 billion US dollars, equivalent to 5.8 months of import coverage, which gives the bank sufficient margin to limit the sharp fluctuations in the shilling exchange rate.
Opposition: Fuel scandal and demands for dismissal
On the other hand, the opposition escalated its rhetoric significantly. The “Unified Alternative Government” coalition issued a statement on April 15 in which it described the management of the energy sector as “a major scandal in the history of Kenya,” claiming that the value chain in the energy sector has become a “full-fledged criminal enterprise.”
The coalition, composed of prominent figures, including former Vice President Rigathi Gachagwa, demanded the holding of an emergency session of Parliament within 7 days, and the immediate cancellation of the oil import framework within the framework of intergovernmental agreements, accusing it of serving special interests. The coalition also called for the resignation and prosecution of Energy Minister Opiyo Wandaye and Trade Minister Lee Kenyagwe on charges of misleading a parliamentary committee.
Popular mobilization has also escalated across social media platforms under hashtags such as #RejectFuelPrices, as activists called for organizing a comprehensive strike and demonstrations in front of Parliament and the Ministry of Energy next Tuesday. On the other hand, President Ruto refused to describe the protests as an effective way to address prices controlled by the global market.
