Kenya is set to begin the phased rollout of locally blended biofuels under new regulations aimed at cutting the country’s dependence on imported fuel and shielding consumers from global oil market shocks.
The move follows the implementation of the Energy (Biofuels) Regulations, 2025, which will introduce ethanol-blended fuels into Kenya’s fuel supply chain through phased E5 and E10 programmes. E5 fuel contains 5 per cent bioethanol, while E10 contains 10 per cent.
The regulations, gazetted in December 2025, establish rules governing biofuel production, licensing, blending, transportation, storage, distribution and retail sale.
The Ministry of Energy and Petroleum and the Energy and Petroleum Regulatory Authority (EPRA) have already convened a high-level stakeholder meeting bringing together oil marketers, ethanol producers, manufacturers, logistics firms and regulators to discuss preparedness ahead of the rollout.
The consultations focused on infrastructure readiness, blending systems, implementation priorities and coordination across the fuel supply chain as Kenya positions itself to join countries rapidly expanding biofuel use.
The push comes amid rising global concerns over energy security, with many countries seeking alternatives to imported petroleum following years of geopolitical disruptions and volatile oil prices.
Bioethanol is produced from crops and agricultural products such as sugarcane molasses, cassava, maize and sorghum through fermentation and distillation. Biodiesel, on the other hand, is processed from vegetable oils, waste cooking oil and other organic materials.
The fuels can also be refined further into Sustainable Aviation Fuel (SAF), which is increasingly being adopted globally as airlines and governments move to reduce carbon emissions in the aviation sector.
Countries including Brazil, India, United States, Thailand and South Africa have already scaled up biofuel blending programmes to reduce reliance on imported fuel, support farmers and strengthen local energy resilience.
Kenya now hopes to replicate part of that success using locally available feedstocks to drive industrial growth and create jobs across agriculture, logistics, manufacturing and renewable energy.
Speaking during the stakeholder consultation, Dr. Eng. Joseph Oketch, Acting Director General of Energy and Petroleum Regulatory Authority, said the regulations could open up an entirely new economic sector while helping the country withstand external fuel shocks.
“The Biofuels Regulations provide Kenya with an important opportunity to strengthen energy security while building new local industries around agriculture, manufacturing, and renewable energy,” he said.
'As we scale domestic bioethanol production and structured blending, we can gradually reduce exposure to external fuel shocks while creating new opportunities for farmers, investors, manufacturers, and other players across the value chain.”
The government says Kenya’s current ethanol production capacity remains heavily underutilised despite growing demand potential.
Eng. Isaac Kiva, Secretary for Renewable Energy in the State Department for Energy under the Ministry of Energy and Petroleum, revealed that the country’s ethanol plants can currently process up to 83 million litres annually, yet only 26.5 million litres are being produced.
“Kenya’s ethanol plants can process 83 million litres a year, yet we currently produce only 26.5 million litres,” Kiva said.
“Scaling domestic bioethanol production will be important not only for supporting cleaner transport fuels, but also for expanding clean cooking solutions, strengthening local industry, and reducing costly fuel imports.”
Industry stakeholders said the programme could unlock massive opportunities across rural economies by creating new markets for crops used in ethanol production while attracting investment into local processing plants and transport infrastructure.
They, however, warned that the success of the rollout will depend heavily on coordination between government agencies, ethanol producers, oil marketers, logistics providers, investors and standards organisations to ensure sustainable implementation of the blending programme.