NAIROBI, Kenya — Life in East Africa’s largest economy became significantly more expensive overnight as Kenyan motorists woke up Wednesday to a staggering hike in fuel prices. The country’s energy regulator, the Energy and Petroleum Regulatory Authority (EPRA), authorized a massive price jump that has sent shockwaves through the transport and manufacturing sectors.
The Numbers Behind the Shock
In the latest monthly review, EPRA raised the price of super petrol by 28.69 Shillings per liter and diesel by 40.3 Shillings. In the capital, Nairobi, petrol now retails at 206.97 KSh ($1.60), while diesel—the lifeblood of the country’s transport and farming sectors—stands at 206.84 KSh.
The regulator cited a “supply shock” driven by a surge in landed import costs. Much of the spike is being attributed to escalating geopolitical tensions in the Middle East, specifically following military strikes earlier this year that disrupted the critical Strait of Hormuz shipping route.
Commuter Chaos and Economic Ripple Effects
The impact was instantaneous. Hours before the midnight deadline on Tuesday, miles-long queues snaked out of service stations as drivers scrambled to fill their tanks at the old rates. By Wednesday morning, the reality of the hike hit commuters’ wallets:
- Public Transit: Minibus (Matatu) operators hiked fares by roughly 25 percent overnight.
- Long-Distance Travel: Bus companies announced increases ranging between $1.54 and $3.86 per seat.
- Inflationary Pressure: With inflation already ticking up to 4.4 percent in March, economists warn that the increased cost of moving goods will soon reflect in the price of basic groceries and household essentials.
A Fragile Buffer
The government attempted to soften the blow by reducing VAT on petroleum products from 16 percent to 13 percent and deploying roughly 6.2 billion Shillings from a stabilization fund. Without these interventions, officials warned that diesel prices could have surged by as much as 70 Shillings per liter.
Kenya remains highly vulnerable to global oil volatility, sourcing nearly all of its refined fuel from Gulf suppliers in Saudi Arabia, the UAE, and Bahrain. As long as the Middle East remains a tinderbox, the “pain at the pump” for the average Kenyan is likely to persist.
