PressBridge

The sharp rise in fuel prices in Kenya is causing growing concern within the business community. In a statement released on May 15, 2026, in Nairobi, the Kenya National Chamber of Commerce and Industry (KNCCI) condemned the latest fuel price increases announced by the Energy and Petroleum Regulatory Authority (EPRA), warning that they could worsen the cost of living crisis and weaken the competitiveness of Kenyan businesses.

Under the new pricing structure, which will remain in effect from May 15 to June 14, 2026, the price of super petrol in Nairobi rose from KSh 197.60 to KSh 214.25 per litre, representing an increase of 8.4%. Diesel, considered vital to many sectors of the economy, recorded a much steeper increase, climbing from KSh 196.63 to KSh 242.92 per litre — a rise of 23.5%. The price of kerosene remains unchanged at KSh 152.78 per litre.

According to the KNCCI, the increase in diesel prices is particularly alarming because diesel serves as the backbone of transportation, agriculture, manufacturing, logistics, and trade. The organization believes the surge will inevitably drive up production, distribution, and transportation costs across the country.

While the Chamber acknowledges that geopolitical tensions in the Middle East and disruptions in the global oil market have contributed to rising fuel prices, it argues that the increases observed in Kenya far exceed global crude oil trends. Between April and May, international crude oil prices rose by approximately 10.7%, while diesel prices in Kenya jumped by 23.5% during the same period.

The KNCCI attributes this gap largely to domestic cost factors, including taxes, levies, exchange-rate fluctuations, commercial margins, and the cost of importing refined petroleum products.

Fuel prices have been steadily rising since January 2026. Petrol prices have increased by 17.4%, while diesel prices have surged by 42.5%. Business leaders warn that this trend could significantly impact household purchasing power and business profitability.

The Chamber also noted that Kenya remains one of the most expensive fuel markets in East Africa. Diesel prices in the country are considerably higher than those in neighboring countries such as Uganda, Tanzania, Burundi, and Ethiopia. According to the KNCCI, this weakens Kenya’s competitiveness in regional transport, cross-border trade, and investment attraction.

The organization warned that the latest fuel hike could lead to a 10% to 20% increase in logistics costs, a 3% to 7% rise in food and consumer goods prices, and greater financial pressure on small and medium-sized enterprises.

In response to the crisis, the Chamber urged the Kenyan government to introduce urgent relief measures. Its recommendations include reviewing fuel taxes, strengthening fuel price stabilization mechanisms, improving transparency in fuel pricing, and providing targeted support for fuel-dependent small businesses.

The KNCCI also called for a diversification of oil supply sources toward African oil-producing countries in order to reduce shipping and importation costs. Additionally, it encouraged authorities to accelerate plans for modern local refineries to reduce Kenya’s dependence on imported refined petroleum products.

In the statement, the President of the KNCCI, Dr Erick Rutto, described the fuel crisis as a nationwide economic shock affecting both households and businesses. He urged the government to act swiftly to protect citizens’ purchasing power and preserve the resilience of Kenya’s economy.