Fuel Prices Jump Up To KShs 40 Per Litre In New EPRA Review

By Suleiman Mbatiah

Motorists are set to feel the strain of higher fuel costs after authorities announced a sharp rise in pump prices, driven by escalating international oil prices despite a reduction in Value Added Tax to 13 percent.

The Energy and Petroleum Regulatory Authority (EPRA) said maximum retail prices for Super Petrol, Diesel and Kerosene will rise by KShs 28.69, KShs 40.30 and KShs 39.08 per litre respectively, effective April 15 to May 14, 2026, setting off immediate cost pressures across transport and production sectors.

Across major urban centres, the revised caps place pump prices at KShs 206.97 per litre for petrol in Nairobi, KShs 206.03 in Nakuru, and KShs 206.85 in Eldoret and Kisumu, with diesel averaging about KShs 206 to KShs 207 per litre in the same towns, according to the annexed schedule.

“In the period under review, the maximum allowed petroleum pump prices for Super Petrol and Diesel increases by KShs.28.69/litre and KShs.40.30/litre respectively while that of Kerosene remains unchanged,” said Joseph Okech, EPRA acting director general.

The latest pricing review reflects a sharp escalation in international petroleum costs, with EPRA data showing landed prices rising steeply between February and March 2026. Super Petrol imports jumped by 41.53 percent, diesel by 68.72 percent, and kerosene by 105.15 percent over the same period.

Detailed international benchmarks indicate that petrol prices rose to about KShs 126,541 per metric tonne in March 2026 from KShs 89,249 in February, while diesel surged to KShs 179,891 and kerosene to KShs 196,648, underscoring the global market pressures feeding into local pricing.

Despite the surge, the regulator noted that exchange rate movements remained relatively stable, averaging around KShs 129 to the US dollar over the past year, meaning currency effects played a limited role compared to global price spikes.

“The purpose of the Petroleum Pricing Regulations is to cap the retail prices of petroleum products which are already in the country so that importation and other prudently incurred costs are recovered while ensuring reasonable prices to consumers,” Okech added.

To cushion consumers, the government reduced VAT on petroleum products from 16 percent to 13 percent and continued to deploy the Petroleum Development Levy, which EPRA said has helped moderate what would otherwise have been steeper increases at the pump.

EPRA also highlighted that Kenya imports all its refined petroleum needs, making domestic prices highly sensitive to international market fluctuations and freight costs, which are factored into monthly pricing adjustments.

“EPRA wishes to assure the public of its continued commitment to the observance of fair competition and protection of the interests of both consumers and investors in the energy and petroleum sectors,” Okech said.

The new prices are expected to ripple through the economy, raising transport fares and operational costs for businesses, with analysts warning that households could face additional pressure as fuel-linked expenses feed into the broader cost of living.