Kenya now has the highest fuel prices in the East African region following the Energy and Petroleum Regulatory Authority’s (EPRA) latest pump price review, announced on Monday. The new prices have pushed petrol to Ksh.186.31 per litre in Nairobi, while diesel and kerosene are now retailing at Ksh.171.58 and Ksh.156.58 per litre, respectively. The increases Ksh.8.99 for petrol, Ksh.8.67 for diesel, and Ksh.9.65 for kerosene have sparked widespread concern about their impact on the cost of living.
Compared to its regional neighbours, Kenya’s fuel prices are significantly higher. In Uganda, petrol is averaging UGX 5,400 (approx. Ksh.155) per litre, while in Tanzania, a litre of petrol retails at about TZS 3,200 (approx. Ksh.150). Rwanda also maintains relatively lower fuel prices, with petrol costing around RWF 1,800 (approx. Ksh.170) per litre. This stark contrast puts Kenya at a disadvantage, especially for consumers and businesses grappling with inflationary pressures.
The rising fuel prices are expected to have a ripple effect across key sectors such as food, transport, and manufacturing. Public service vehicle fares are likely to rise, and food prices are expected to follow due to increased transportation costs, further squeezing household budgets.
EPRA attributed the sharp increase to a rise in the global landed cost of petroleum products, driven by geopolitical tensions particularly the Israel-Iran conflict which have disrupted global oil supply chains. Treasury Cabinet Secretary John Mbadi recently echoed these concerns, noting that Kenya is feeling the brunt of an unpredictable global oil market.
Analysts warn that unless the government intervenes possibly through subsidies or tax relief Kenyans will continue to bear the brunt of global oil volatility. With fuel prices deeply intertwined with the cost of goods and services, sustained high prices could lead to further inflation and public discontent.
As Kenyans brace for tough times ahead, the government faces growing pressure to cushion citizens from external shocks and ensure that energy remains accessible and affordable in the long term.
