Diesel Consumption in Kenya Declines for the first time in Seven Years

By Vera Shawiza / October 9, 2017




Diesel consumption in Kenya slipped to 1.24 billion litres in the first six months of the year compared to 1.25 billion litres during a similar period last year.

This is the first time in a period of seven years that Kenya has experienced a drop, a move that has been pointed to have resulted from a slow down on the economy.

As written by the Business Daily Newspaper, Kenya’s consumption of diesel has been rising steadily since 2011, helped by increasing demand from key sectors of the economy.

The downturn has been blamed on prolonged drought and removal of trucks from Kenyan roads by traders from Uganda and Rwanda in favour of Tanzania due to the build-up of election fever in that period. Road transport accounts for more than half of total fuel consumed because of the low manufacturing base and low levels of mechanized agriculture, according to data from the dealers’ lobby, Petroleum Institute of East Africa (PIEA).

“The economy has struggled this year with the effects of drought, election tensions and our neighbours opting to transport goods through Tanzania,” said PIEA chairman Powell Maimba.

The drop in diesel use came as businesses sharply cut output in a tough economic climate that saw private sector activity shrink to a nearly four-year low last month.

Stanbic Bank last week said in its monthly market survey that output tumbled for the fifth month in a row in September, weakened by a constrained money circulation and dropping customer orders.

Since the Supreme Court annulled President Uhuru Kenyatta’s victory on September 1, both the opposition and the ruling party have engaged in increasingly bitter rhetoric.

The Kenya Private Sector Alliance (Kepsa) said investors are postponing projects on political jitters that have triggered a slowdown in spending, hurting businesses.

Businesses have also taken a knock from a credit squeeze as banks held back on lending in the wake of legal caps on lending rates introduced in September 2016.

But industry data shows that intake of petrol, used in private cars, rallied six percent in the half-year period to 836.4 million litres, underlining Kenyans’ love for travel in personal cars.

Petrol is taxed more compared to diesel, used to power trucks, buses, vans, tractors, and factories, as part of the government’s policy to encourage productive use of fuel.



About Vera Shawiza

Vera Shawiza is Soko Directory’s in-house journalist. Her zealous nature ensures that sufficient and relevant content is generated for the Soko Directory website and sourcing information from clients is easy as smooth sailing. Vera can be reached at: (020) 528 0222 or Email: [email protected]

View other posts by Vera Shawiza


More Articles From This Author







Other Related Articles








SOKO DIRECTORY & FINANCIAL GUIDE

ARCHIVES

2018
  • January 2018 (291)
  • February 2018 (220)
  • March 2018 (279)
  • April 2018 (226)
  • May 2018 (240)
  • June 2018 (137)
  • 2017
  • January 2017 (183)
  • February 2017 (195)
  • March 2017 (207)
  • April 2017 (104)
  • May 2017 (169)
  • June 2017 (206)
  • July 2017 (190)
  • August 2017 (196)
  • September 2017 (186)
  • October 2017 (236)
  • November 2017 (253)
  • December 2017 (266)
  • 2016
  • January 2016 (167)
  • February 2016 (165)
  • March 2016 (190)
  • April 2016 (143)
  • May 2016 (246)
  • June 2016 (183)
  • July 2016 (271)
  • August 2016 (250)
  • September 2016 (234)
  • October 2016 (191)
  • November 2016 (243)
  • December 2016 (154)
  • 2015
  • January 2015 (1)
  • February 2015 (4)
  • March 2015 (166)
  • April 2015 (109)
  • May 2015 (117)
  • June 2015 (121)
  • July 2015 (150)
  • August 2015 (157)
  • September 2015 (189)
  • October 2015 (171)
  • November 2015 (174)
  • December 2015 (208)
  • 2014
  • March 2014 (2)
  • 2013
  • March 2013 (10)
  • June 2013 (1)
  • 2012
  • March 2012 (7)
  • April 2012 (15)
  • May 2012 (1)
  • July 2012 (1)
  • August 2012 (4)
  • October 2012 (2)
  • November 2012 (2)
  • December 2012 (1)
  • 2011
    2010
    2009
    2008
    2007
    2006
    2005
    2004
    2003
    2002
    2001
    2000
    1999
    1998
    1997
    1996
    1995
    1994
    1993
    1992
    1991
    1990
    1989
    1988
    1987
    1986
    1985
    1984
    1983
    1982
    1981
    1980
    1979
    1978
    1977
    1976
    1975
    1974
    1973
    1972
    1971
    1970
    1969
    1968
    1967
    1966
    1965
    1964
    1963
    1962
    1961
    1960
    1959
    1958
    1957
    1956
    1955
    1954
    1953
    1952
    1951
    1950