Kenyans are reeling from another sharp increase in fuel prices, with the Energy and Petroleum Regulatory Authority (EPRA) announcing a rise of Ksh.8.99 for petrol, Ksh.8.67 for diesel, and Ksh.9.65 for kerosene per litre, effective July 15 to August 14. The new prices stand at Ksh.186.31 for petrol, Ksh.171.58 for diesel, and Ksh.156.58 for kerosene in Nairobi.
While EPRA attributed the increase to higher global landed fuel costs and exchange rate dynamics, many stakeholders argue that the problem runs deeper than external shocks such as the recent Israel-Iran tensions. Indeed, although the Israel-Iran conflict briefly pushed Brent crude oil prices to $80 per barrel in mid-June, they soon fell back below $70. Yet Kenyan pump prices rose sharply, contradicting the global trend.
Critics, including the Motorists Association of Kenya (MAK) and Kiharu MP Ndindi Nyoro, blame excessive taxation and opaque fiscal policies. Nyoro claims that over Ksh.80 per litre of fuel goes to taxes and levies, citing the government’s move to securitize fuel levies to borrow Ksh.175 billion without parliamentary approval.
Further compounding the issue is Kenya’s Government-to-Government fuel import deal with Gulf oil giants. While originally aimed at easing forex pressure and stabilizing the Kenyan shilling, the deal has fixed local fuel prices, denying consumers the benefit of global price drops. The arrangement’s lack of transparency and unclear timeline have fueled more public outrage.
Experts argue that the regressive taxation on fuel—combined with the high margins for oil marketers—continues to burden ordinary Kenyans. As fuel is a key driver of inflation, such policy decisions strain households and small businesses.
As fuel costs soar and economic hardship deepens, the government must urgently re-evaluate its taxation strategy and bring transparency to fuel import deals. Protecting consumers—not punishing them—should be the priority.
