Questions Over High Fuel Prices Despite Country Exporting Crude Oil

By Staff Writer

Kenyans are increasingly questioning why fuel prices remain among the highest in East Africa despite the country exporting crude oil since 2019, with growing frustration over the rising cost of living fueling accusations of economic mismanagement, excessive taxation and lack of transparency in the oil sector.

The debate has intensified following regional fuel price comparisons that show motorists in Kenya paying significantly more for petrol than consumers in neighboring countries such as Uganda, Tanzania and Burundi, even though those countries do not produce crude oil and rely heavily on imports routed through Kenya.

Critics argue that ordinary citizens have seen little benefit from Kenya’s entry into the oil-exporting market, years after the government celebrated the country’s first crude oil shipment from Turkana under the Early Oil Pilot Scheme in 2019.

Dr. Isaac Newton Kinity, a counselor and human rights activist, accused the government of failing to provide transparency and accountability over how revenues generated from Kenya’s crude oil exports are being managed and whether ordinary citizens are benefiting from the sector.

“It is perturbing, disturbing and annoying to see Kenya’s system of administration raising the prices of fuel to unbearable levels, whereas the neighbouring countries Uganda, Tanzania and Burundi are selling their petrol at very cheap prices. Kenya has got oil,” Kinity said.

Kenya’s first crude oil export in 2019 was widely viewed as a milestone for the country’s energy ambitions. However, the project immediately raised questions over revenue sharing between the national government and local communities in Turkana, concerns that continue to linger years later.

Kinity, who is also the chairman of the Kikimo Foundation for Corruption and Poverty Eradication, claimed there was little public information about the amount of crude oil being exported or the revenues generated from the sector.

“In 2019, Kenya shipped its first batch of crude oil outside Kenya. No one understands how much oil is sold weekly, monthly or annually. This has been kept as a secret of those looters of public funds in Kenya,” he said.

The criticism comes at a time when Kenyan households are struggling with higher taxes, increased transport costs and elevated prices of basic commodities, pressures that many economists link to inflation, public debt obligations and a weakening shilling.

Energy analysts note that while Kenya exports crude oil, the country still imports most of its refined petroleum products because it lacks adequate refining capacity. As a result, local pump prices remain heavily influenced by global oil prices, exchange rate fluctuations, shipping costs and government-imposed taxes and levies.

Fuel prices in Kenya include multiple charges such as the Road Maintenance Levy, Petroleum Development Levy and Value Added Tax, all of which contribute significantly to the final retail price paid by consumers.

Economists also point out that neighboring countries may maintain lower pump prices through different tax regimes, subsidies or state pricing interventions despite not producing oil locally.

Even so, the issue has become increasingly political, with critics insisting that Kenya’s status as an oil exporter should translate into at least some relief for consumers burdened by a high cost of living.

Kinity further called on the administration of President William Ruto to publicly disclose how Kenya’s oil resources and revenues are being managed, saying citizens deserve transparency on the country’s crude oil exports and the benefits generated from the sector.

“A country with oil like Kenya should have the cheapest prices of oil. The administration of William Ruto has got to explain to Kenyans what is going on about the oil that is being excavated in Kenya and whose first batch of crude oil was sold outside Kenya in 2019,” he said.

The growing public anger over fuel costs reflects broader concerns about governance, accountability and whether revenues generated from Kenya’s natural resources are benefiting ordinary citizens or being lost through corruption and inefficient public spending.