Kenyan motorists are reeling from one of the sharpest fuel price hikes in recent memory as the Energy and Petroleum Regulatory Authority (EPRA) announced massive increases effective today.
In Nairobi, diesel prices have skyrocketed by a record KSh40.30 per litre, now retailing at KSh206.84. Super petrol climbed KSh28.69 to KSh206.97 per litre, while kerosene held steady at KSh152.78 per litre thanks to a hefty subsidy. Similar steep adjustments are hitting pumps across the country, from Mombasa to Kisumu and beyond.
This dramatic jump stems from a volatile global energy market. Escalating tensions in the Middle East, including the US-Israel conflict with Iran, have triggered refinery attacks and disruptions in the Strait of Hormuz – a vital chokepoint for nearly a quarter of the world’s oil supply. Landed costs for imports have surged dramatically: diesel shot up 68.72% to $1,073.82 per cubic metre, petrol rose 41.53% to $823.87, and kerosene more than doubled by 105.15% to $1,311.93. Brent crude has breached the $100-per-barrel mark, with soaring shipping and insurance costs adding further pressure.
“This marks the steepest single diesel increase on record,” industry observers note, underscoring Kenya’s heavy reliance on imported petroleum products and its exposure to far-off geopolitical shocks.
In a bid to ease the burden on consumers, the government is applying subsidies of KSh20.30 per litre on diesel and KSh4.92 on petrol. A temporary reduction in VAT from 16% to 13% on super petrol, diesel, and kerosene has also been activated.
“Effectively, the value added tax rate on super petrol, diesel and kerosene has been reduced from 16 percent to 13 percent in order to cushion consumers from the high landed cost of petroleum products,” explained Joseph Oketch, acting director-general of EPRA.
Additionally, a high-cost petrol cargo imported outside the Government-to-Government (G2G) framework was deliberately excluded from the pricing formula, preventing an extra KSh14 per litre hit at the pump.
The timing could hardly be worse. Kenya’s inflation rate edged up to 4.4% last month, and analysts warn that higher fuel costs will quickly ripple through the economy. Transport fares for matatus, buses, and boda-boda riders are expected to rise almost immediately, driving up food prices, manufacturing expenses, and even electricity bills.
East Africa’s dependence on imported fuel once again leaves the region vulnerable to every tremor in global oil markets – from Red Sea disruptions to blockades in critical shipping lanes.
The new prices take effect immediately and will remain in force until May 14, 2026. With the Middle East crisis showing no signs of easing, another painful review could follow soon.
Motorists are advised to fill up strategically, adopt fuel-efficient driving habits, and prepare for higher costs across daily essentials. As global forces collide with local realities, the pain at the pump is set to test Kenyan wallets like never before.
