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Kenya Ditches 2,500 Petrol Cars for 3,000 Electric Vehicles Amid Middle East War

Kenya's Treasury CS John Mbadi reveals the government is replacing 2,500 petrol vehicles with 3,000 locally assembled EVs as Middle East war threatens fuel supply.

April 8, 2026

Kenya Scraps Petrol Vehicle Plan, Orders 3,000 Electric Cars as Middle East War Spikes Oil Prices

Treasury CS John Mbadi says Middle East conflict has forced Kenya to accelerate its shift to electric vehicles, with a local supplier set to assemble 3,000 EVs — up from 2,500 petrol cars originally planned.

Kenya’s government has abandoned plans to purchase 2,500 fuel-powered vehicles and will instead procure 3,000 locally assembled electric vehicles (EVs), Treasury Cabinet Secretary John Mbadi has announced — citing the escalating Israel-US war on Iran as a key trigger.

Mbadi made the disclosure before the National Assembly’s Finance and National Planning Committee, chaired by Molo MP Kuria Kimani, warning that the Middle East conflict poses direct risks to Kenya’s economy through fuel import costs and supply disruptions.

“We must reduce reliance on fossil fuels and go to electric vehicles,” Mbadi told MPs. “The supplier will assemble them here and this will create jobs for local youth.”

Oil Prices Surge as Strait of Hormuz Blockade Bites

The conflict, which began on February 28, 2026, when Israel and the United States launched large-scale strikes on Iran, has triggered retaliatory attacks on US bases across Qatar, Bahrain, Jordan, the UAE, and Kuwait — and prompted Iran to blockade the Strait of Hormuz.

The Strait is one of the world’s most critical energy chokepoints, carrying approximately 20% of global oil and gas supply annually. Its disruption has sent crude prices soaring.

Kenya’s key oil benchmark, Murban crude, jumped from $63.6 per barrel in February 2026 to a peak above $116, before easing to $95.9 per barrel by mid-March. Brent crude followed a similar trajectory.

Kenya Highly Exposed to Middle East Oil Shock

Mbadi warned that Kenya is particularly vulnerable to the crisis. Petroleum imports account for roughly 20% of Kenya’s total import bill, making fuel availability and pricing a direct threat to inflation, industrial output, and economic stability.

“The Middle East accounts for approximately 30–35% of global crude oil production and 17–20% of natural gas output,” Mbadi said. “As Africa’s largest external supplier of petroleum products, instability in the region hits African economies hardest.”

Tax Incentives for EVs on the Way

To fast-track EV adoption, the Treasury is developing tax incentives through the proposed Tax Laws (Amendment) Bill, designed to reduce the cost of locally assembled electric vehicles for both government and private buyers.

Mbadi last week also told MPs that the government will review VAT on petroleum products and deploy a Sh17 billion fuel stabilisation fund to protect consumers if the conflict extends beyond the May–June pump price review window.

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