Fuel shock triggers fare hikes as Kenyans brace for rising costs
Kenyans are bracing for higher transport and living costs after a sharp increase in fuel prices triggered immediate fare hikes across the public transport sector.
Matatu operators announced the fare adjustments on Tuesday night following a review by the Energy and Petroleum Regulatory Authority (EPRA), which raised fuel prices significantly in its latest monthly pricing cycle.
In the new pricing, diesel rose by Sh40.30 per litre while super petrol increased by Sh28.69. In Nairobi, super petrol now retails at Sh206.97, diesel at Sh206.84 and kerosene at Sh152.78, with the changes taking effect at midnight for the next 30 days.
The Kenya Transporters Association Ltd (KTA) said the increase would have an immediate and unavoidable impact on transport costs, citing fuel as the biggest expense in the sector.
“The Kenya Transporters Association Ltd wishes to inform members of today’s significant increase in diesel prices, which have risen by Sh40 per litre, from Sh163 to Sh203 per litre, representing an increase of approximately 24.5 per cent,” the association said in a statement.
KTA noted that fuel accounts for about 55 per cent of total operating costs in road transport, warning that the spike would push overall transport expenses up by 13 to 14 per cent.
“Members are advised that such a substantial rise in input costs cannot be absorbed sustainably. It is therefore necessary for all members to immediately review their cost structures and adjust transport rates accordingly to reflect the new cost realities,” the statement added.
The association urged operators to engage customers transparently as they implement the fare increases, warning that failure to adjust could disrupt service delivery.
The latest adjustments are expected to ripple across the economy, with higher transport costs likely to drive up the prices of goods and services, deepening the cost-of-living pressure on households.
EPRA attributed the price hike to rising global oil costs and changes in the taxation framework within the petroleum sector. However, the regulator said the government had taken steps to cushion consumers.
“Effectively, the Value Added Tax rate on Super Petrol, Diesel, and Kerosene has been reduced from 16 per cent to 13 per cent in order to cushion consumers from the high landed cost of petroleum products,” EPRA said.
Additionally, the government will tap into the Petroleum Development Levy (PDL) to stabilise prices, with approximately Sh6.2 billion allocated for the intervention.
