Kenya raised maximum retail fuel prices on Wednesday as soaring Middle East conflict costs boosted import expenses, pushing petrol and kerosene prices in the East African nation to historical highs.
According to the Energy and Petroleum Regulatory Authority (EPRA), super petrol increased 6% to KSh226.96 per litre in Nairobi, while diesel rose 4.5% to KSh227.76 for the October 15–November 14 pricing cycle.
Kerosene registered the largest surge, leaping 14.89% or KSh28.49 to reach KSh219.87 per litre, driven by higher landed costs and regulator efforts to curb cross-fuel blend adulteration.
To soften consumer price shocks, Kenyan lawmakers extended a reduced 8% Value-Added Tax (VAT) rate on petroleum products through January 14, maintaining the discount from the standard 16% rate.
EPRA Director General Edward Kinyua noted that government intervention preserved stabilization funds, following KSh29.4 billion spent on fuel price support during the FY2025/26 period to control inflation.
The price adjustments follow landed cost spikes, with super petrol import expenses jumping 11.81% in August, reflecting elevated freight and maritime insurance premiums across Red Sea supply routes.
Relying on the Middle East for nearly all refined petroleum imports, Kenya faces renewed inflationary pressures across key sectors, including logistics, agriculture, manufacturing, and power generation.
The pump price increase coincides with headline inflation hitting 6.8% in September, complicating Central Bank of Kenya policy efforts to anchor price stability amidst regional currency pressures.
