THE re-opening and closure of the Strait of Hormuz is something of a major concern as it continues to create unpredictability.
As one of the world's most critical oil transit routes, any disruption, whether through closure, threats to shipping, or geopolitical tensions has immediate consequences for global energy markets.
Even the mere possibility of interruptions can trigger spikes in crude oil prices, which are eventually felt at fuel pumps thousands of kilometres away, including in Kenya.
The effects are already evident. Fuel prices remain elevated, increasing the cost of transportation, manufacturing, agriculture and virtually every other sector of the economy. Households are paying more for goods and services as businesses pass on rising operating costs to consumers.
This comes at a time when inflation is gathering pace. Kenya's annual inflation rate rose to 6.7 per cent in May from 5.6 per cent in April, the highest level in more than two years.
Higher transport costs, food prices and electricity charges have been major contributors. Global energy volatility and regional conflicts have only compounded these pressures.
The government deserves credit for measures taken in recent months to cushion consumers from fuel price increases.
However, the unpredictability of developments in the Gulf underscores the need for sustained vigilance.
Kenya must continue strengthening mechanisms that stabilise fuel and electricity prices while accelerating investments in renewable energy sources that reduce dependence on imported petroleum.
Diversifying energy supplies and maintaining prudent fiscal interventions can help shield households and businesses from external shocks.
In an increasingly uncertain world, protecting the economy from energy-driven inflation is not merely desirable, it is essential for preserving growth, jobs and the purchasing power of ordinary wananchi.
