The World Bank Group has announced a coordinated plan to provide financial aid to vulnerable countries like Kenya amid the Middle East conflict's effects. President William Ruto warned oil marketers against hoarding fuel for profit. This comes as fuel prices surge and some Kenyan petrol stations report shortages.
The World Bank Group announced a coordinated plan on Thursday, March 26, to provide financial aid and policy support to vulnerable countries including Kenya, hit by the ongoing Middle East conflict. The war has disrupted supply routes, driving up fuel prices globally and causing shortages at some Kenyan petrol stations.
"A number of the World Bank Group’s clients in emerging markets have reached out to us as the conflict in the Middle East has started to impact commodity prices and logistics," the World Bank stated.
The lender is collaborating with governments, the private sector, and partners while monitoring markets. Crude oil prices rose nearly 40 percent from February to March, liquefied natural gas shipments to Asia increased by almost two-thirds, and nitrogen-based fertiliser prices jumped nearly 50 percent this March.
"We are ready to respond at scale, combining immediate financial relief with policy expertise and private sector support for the recovery of jobs and growth," it added. The bank will use its full toolkit for relief.
The announcement follows President William Ruto's warning on March 26 during bilateral agreements signing with Mozambique at State House, Nairobi. He assured adequate fuel supplies despite the Strait of Hormuz closure but cautioned oil marketers. “The challenge of the Middle East crisis is going to pose a threat to our economies both in terms of fuel supply [and] commodity supply... because of the challenges of logistics and transport across the Strait of Hormuz," Ruto stated. "We have also been very clear to our oil marketers... that the government of Kenya is not going to entertain any artificial shortages that are meant to benefit profiteers,” he warned.
