15^th 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

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.

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

The post PRESS STATEMENT: KNCCI Statement on Latest Fuel Price Increase, Cost of Living and Business Competitiveness appeared first on KNCCI.

By Mr KK Mutai, Chief Executive Officer– Kenya National Chamber of Commerce and Industry (KNCCI)

The Kenya National Ch amber of Commerce and Industry (KNCCI) acknowledges that the current fuel pressure are occurring within a broader global context, particularly the escalating tensions involving Iran, which have disrupted global oil supply chains and contributed to rising international crude oil prices. As a net importer of petroleum products, Kenya remains highly exposed to such global shocks.

KNCCI notes the recent downward adjustment in fuel prices following the removal of the additional 8% VAT by EPRA, resulting in revised pump prices.

KNCCI welcomes this intervention as a timely and necessary step towards cushioning households and businesses from the sharp increases previously experienced. This action demonstrates Government’s responsiveness to the economic pressures arising from both global and domestic factors.

This increase places immense pressure on businesses and households already facing a high cost of living.

“Kenyan businesses cannot absorb another fuel shock of this magnitude without serious consequences for jobs, prices, and economic stability.”

To Kenya’s economy fuel is more than a commodity but backbone of every sector of our economy.
However, while the reduction provides short-term relief, fuel prices remain elevated relative to pre-adjustment levels, and broader cost pressures across the economy persist.

The surge has been driven by global factors, including the Middle East conflict, which has caused: a 41.5% increase in petrol landed costs, a 68.7% increase in diesel landed costs.

At the same time, global oil prices have risen by over 25–40% during the conflict period, significantly raising the cost of fuel imports for energy-dependent economies like Kenya.

Kenya imports nearly all its petroleum products, meaning these global shocks translate directly into domestic inflation, higher transport costs, and increased cost of doing business.

The impact is already being felt across the economy:

• Transport costs are rising sharply, with fares increasing by up to 25%
• Logistics and freight costs, where fuel accounts for up to 50% of expenses, are escalating rapidly
• Production costs in manufacturing and agriculture are rising by 15–30%, threatening business sustainability

At the same time, disruptions in key global shipping routes such as the Red Sea and Suez Canal are increasing delivery times and costs, further straining Kenya’s supply chains and export capacity.

Kenya’s trade exposure to the Middle East, valued at over KSh 700 billion annually, means that prolonged instability will directly affect key exports such as tea, horticulture, meat, and coffee, undermining foreign exchange earnings and market access.

Without urgent intervention, this crisis will translate into higher food prices, reduced export competitiveness, and slower economic growth.

This situation is further compounded by the domestic fuel pricing structure, where taxes and levies account for nearly 45% of the pump price, significantly inflating the cost borne by businesses and consumers.

KNCCI calls for immediate and coordinated action:

• A comprehensive review of fuel taxes and levies to reduce the cost burden and improve transparency
• Institutionalized public-private sector dialogue to ensure consultation before major pricing decisions
• Targeted support for transport operators, SMEs, and export sectors most affected by rising fuel and logistics costs

“Kenya cannot continue to manage fuel shocks through short-term measures. Structural reforms are now unavoidable.”

The private sector stands ready to partner with Government to stabilize prices, protect jobs, and safeguard Kenya’s economic competitiveness.

The time to act is now.

The post KNCCI PRESS STATEMENT FOLLOWING THE FUEL PRICE INCREMENT appeared first on KNCCI.