Kenya has implemented a substantial increase in fuel prices, with diesel experiencing a record surge despite a recent reduction in fuel tax. This sharp rise is primarily attributed to escalating global oil prices, exacerbated by the conflict in Iran, and higher shipping costs. The energy regulator’s latest review saw diesel prices climb by 40 Kenya shillings to KES 206 ($1.6; £1.2) per litre, while petrol rose by 28 shillings to a comparable level. This occurred even as the government lowered the value-added tax from 16% to 13%. These new prices are set to remain in effect until May 14.
The price hikes coincide with reports of fuel shortages in various parts of the country, though the government maintains sufficient stock levels and accuses some fuel companies of hoarding supplies. Adding to the complexity, a major controversy has emerged concerning an allegedly substandard and overpriced fuel consignment imported last month, outside official government-to-government agreements. Public outrage has mounted over reports that this disputed fuel may have entered the market after being blended with existing government reserves, prompting calls for accountability. The government had previously announced the cancellation of this consignment due to quality and cost concerns, prohibiting its sale by oil marketers. The ongoing investigation into this matter has already led to the arrest and resignation of senior energy officials. The Energy and Petroleum Regulatory Authority (Epra) confirmed on Wednesday that this controversial consignment was not included in the calculation of the new fuel prices.
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