PRESS STATEMENT

15th May 2026, Nairobi, Kenya. The Kenya National Chamber of Commerce and Industry (KNCCI) expresses concern over the latest fuel price increase announced by EPRA for the period 15  May to 14 June 2026 pricing cycle.

In Nairobi, Super Petrol has increased by KSh 16.65 to KSh 214.25 per litre, while Diesel has risen sharply by KSh 46.29 to KSh 242.92 per litre. Kerosene remains unchanged at KSh 152.78 per litre.

The sharp rise in diesel is particularly concerning because diesel is the backbone of transport, agriculture, manufacturing, logistics, construction, and general trade. Any increase in diesel prices quickly feeds into the cost of moving goods, producing essential commodities, and delivering services across the economy.

KNCCI acknowledges that current fuel price pressures are partly driven by global oil market disruptions linked to geopolitical tensions in the Middle East. However, the April–May comparison shows that while global crude oil prices increased by about 10.7%, Kenya’s diesel price rose by 23.5% over the same period. This points to the continued role of domestic cost buildup, including taxes, levies, exchange-rate effects, margins and landed product costs.

April–May Fuel Price Movement

Product April Price May Price Increase % Increase
Super Petrol KSh 197.60 KSh 214.25 KSh 16.65 8.4%
Diesel KSh 196.63 KSh 242.92 KSh 46.29 23.5%
Kerosene KSh 152.78 KSh 152.78 0.00 0.0%

Since January, Petrol has increased by 17.4%, while Diesel has increased by 42.5%. This confirms that the current fuel shock is diesel-led and will have direct consequences for the cost of living, cost of production, and competitiveness of Kenyan businesses.

KNCCI notes that Kenya remains a relatively high-cost fuel market compared to regional peers such as Uganda and Tanzania. This weakens Kenya’s competitiveness in logistics, manufacturing, cross-border trade, and investment attraction.

Regional Fuel Price Comparison

Regional prices show that Kenya remains one of the higher-cost fuel markets among selected East and Horn of Africa peers.

 

Country Petrol (KSh/L) Diesel (KSh/L) Key Position
Kenya 214.25 242.92 Baseline; highest diesel among selected peers
Uganda 179.74 174.37 Lower than Kenya; diesel about 28% lower
Tanzania 205.00 211.40 Lower than Kenya; diesel about 13% lower
Rwanda 259.09 194.70 Petrol higher than Kenya; diesel lower
Burundi 178.50 175.20 Lower than Kenya
Ethiopia 137.54 148.11 Lower than Kenya

The comparison shows that Kenya’s diesel price is materially higher than key regional competitors, including Uganda and Tanzania.

The global crude oil shock is real: crude prices are now roughly 41%–51% above pre-conflict levels. However, the April–May comparison shows that while crude oil rose by about 6.8% between USD 100.19 and USD 107.00, Kenya’s diesel price rose by 23.5% over the same pricing cycle. This reinforces KNCCI’s position that domestic cost build-up—including taxes, levies, landed product costs, exchange rate effects and margins—continues to amplify the impact on businesses and households.

The latest increase is expected to:

  • Raise transport and logistics costs by 10%–20%;
  • Push up food and consumer goods prices by 3%–7%;
  • Increase manufacturing and farm distribution costs by 5%–12%;
  • Squeeze MSME cashflows and profit margins by 5%–15%;
  • Weaken Kenya’s regional trade competitiveness, especially against lower-cost fuel markets.

KNCCI Recommendations

  • KNCCI calls on Government to urgently adopt practical cushioning measures:
  • Fuel taxation: Review and rationalize fuel taxes and levies, especially on diesel.
  • Stabilization: Strengthen transparent fuel price stabilization mechanisms.
  • Price transparency: Publish a clear fuel price build-up in every review cycle.
  • MSME support: Provide targeted relief for fuel-intensive MSMEs.
  • Logistics efficiency: Reduce port, storage, transport, and distribution inefficiencies.
  • Competitiveness: Protect Kenya’s position as a regional trade and logistics hub.
  • Diversification to African Producers: Kenya must pivot its supply markets toward African oil-producing nations to leverage shorter shipping routes and continental trade agreements.
  • Regional Refining Capacity: The Chamber lauds the recent announcement by the Dangote Group regarding new refinery investments. We urge the government to fast-track plans for a modern local refinery to reduce our total reliance on expensive refined imports.

The current fuel increase is not just an energy issue; it is an economy-wide shock. KNCCI urges Government to move with urgency to cushion households, protect businesses, and reduce domestic cost drivers that amplify global fuel shocks.

KNCCI remains committed to working with Government, EPRA, National Treasury, transporters, manufacturers, traders, and other stakeholders to develop practical solutions that protect livelihoods, sustain enterprise growth, and strengthen Kenya’s economic resilience.

ENDS

By Dr Erick Rutto, Chamber President