Supply chain expert flags global oil risk that could hit Kenya prices

A senior supply chain expert has warned that instability in one of the world’s most strategic oil routes could quickly push up fuel and transport costs in Kenya, with ripple effects felt across prices of goods and services in the economy.

Kenneth Matiba, Chief Executive Officer of the Kenya Institute of Supplies Management, on Wednesday, said any disruption in the Strait of Hormuz would not remain confined to the region but would instead shake global oil flows and supply systems that many countries depend on. He noted that the channel remains a key passage for global energy movement.

During an interview on Radio Generation, he pointed out that the Strait handles about 21 million barrels of oil daily, nearly 20% of global supply, making it a critical artery in international trade. Any interruption, he said, would immediately reflect in global markets and later filter into countries like Kenya that rely on imported fuel.

“A disruption on that street has an impact on the global supply chains,” he said.

He explained that Kenya would feel the effects through higher transport costs, increased import bills, and rising prices of basic goods as inflationary pressure builds up.

Matiba stressed that procurement and supply chain systems play a central role in managing such risks because they determine how goods and services move from source markets to consumers.

He described supply chains as deeply connected to daily life and not limited to government purchasing or formal contracts.

“Supply Chain is everything, the clothes you put on, the shoe you put on, the belt you have the quality of that belt, the cost of that belt, the source market and where you acquire that belt,” he said.

He added that past global disruptions, including the Covid-19 pandemic, showed how quickly economies can be affected when supply systems break down.

“When Covid happened and the global supply chains were disrupted, you and me directly felt the impact,” he said.

According to him, procurement professionals sit at the centre of ensuring efficiency in the use of resources, linking user needs to final delivery of goods and services.

“The procurement professional is the midwife between the user requirements and the product that they eventually get,” he said.

He added that their work is to ensure that what is delivered meets required standards in quality, quantity, and cost.

“That product when they get it must be in the right quality, must be in the right quantity, must be at the right cost, otherwise we suffer from issues of lack of value for money,” he said.

Matiba also outlined ongoing reforms at the Kenya Institute of Supplies Management aimed at strengthening accountability and professionalism in the sector.

He said the institute has handled more than 116 disciplinary cases in the past two years and signed a memorandum of understanding with the Ethics and Anti-Corruption Commission to deal with cases of professional misconduct.

He noted that the cooperation has helped reduce the number of procurement officers being taken to court, as internal disciplinary systems become stronger.

The institute has also rolled out compliance audits, checks, and advisory programmes across public institutions. In the last two years, nearly 200 institutions have undergone compliance reviews, covering more than 2,000 professionals.

Matiba raised concern that about 40% of people working in procurement are not properly registered, pointing to gaps in compliance within the sector.

He said enforcement measures have also led to staff redeployments and improved recognition of qualified professionals in public service.

He further revealed that 9,000 professionals renewed their licences in the first quarter of this year alone, showing growing compliance levels.

“We are very deliberate when it comes to creating an ecosystem of accountability for procurement professionals,” he said.

He added that the institute is targeting up to 90% compliance among practitioners by the end of the year through continued enforcement and awareness efforts aimed at both professionals and accounting officers.