Fuel Prices Rise Sharply Despite Government Relief Measures

Kenya has recorded a significant increase in fuel prices for the April–May 2026 review period, following the latest announcement by the Energy and Petroleum Regulatory Authority (EPRA).
Petrol prices have increased by Sh28.69 per litre, while diesel has risen by Sh40.30 per litre. Kerosene prices remain unchanged.
In Nairobi, the new maximum retail prices of petrol will be Sh206.97 per litre,Diesel: Sh206.84 per litre and Kerosene: Sh152.78 per litre respectively.
The new prices will be in effect from April 15 to May 14, 2026.
To cushion consumers, the government has reduced Value Added Tax (VAT) from 16% to 13% and will spend approximately Sh6.2 billion from the Petroleum Development Levy Fund to stabilise prices. However, these measures have not fully offset rising global oil costs.
The price increase comes amid ongoing challenges in the fuel sector, including supply disruptions, higher international oil prices, and concerns over fuel import processes. A disputed fuel shipment imported outside the government framework has been excluded from pricing and is under investigation.
The higher fuel costs are expected to have a broad economic impact, particularly by increasing the cost of transport, food, and other essential goods. Businesses and households are already adjusting to rising operating and living expenses.
Analysts warn that continued volatility in global oil markets and a weakening shilling could sustain upward pressure on prices. Attention now shifts to fuel supply stability and the potential need for further policy interventions.
Overall, the latest price adjustment highlights growing pressure in Kenya’s energy sector and signals a challenging period ahead for both consumers and businesses.