Kenya is facing a deepening economic crisis following the sharp rise in fuel prices announced by the Energy and Petroleum Regulatory Authority (EPRA) in their latest review.
Diesel prices in Nairobi have risen above KSh230 per litre, while petrol now costs over KSh214 per litre, making Kenya one of the most expensive countries in East Africa for fuel. The soaring prices have triggered widespread concern among citizens, businesses, farmers, and transport operators who rely heavily on fuel for daily operations.
Addressing the media on Tuesday, May 19, presidential hopefully, Eliud Owalo, noted that Kenya’s fuel prices are significantly higher than those in neighboring countries such as Uganda, Tanzania, Rwanda, and Ethiopia. Owalo blamed the crisis on excessive taxation, non-competitive fuel import arrangements, and failed government policies.
According to Owalo, the rising fuel prices have already pushed up transport fares, food prices, and production costs across the country. Farmers are struggling with expensive machinery and transport costs, while manufacturers face reduced competitiveness due to high operational expenses. Inflation has also continued to rise, putting more pressure on ordinary Kenyans.
To address the crisis, Owalo is proposing several immediate and long-term solutions. These include reducing or removing the 8% VAT on fuel, reviewing fuel levies such as the Petroleum Development Levy, and temporarily capping profits made by Oil Marketing Companies. He is also calling for reforms in the Government-to-Government oil deal, investment in local refining capacity, establishment of strategic petroleum reserves, and promotion of alternative energy sources such as electric mobility and renewable energy.
Owalo is urging the government to act quickly before the situation worsens into a full national economic and social crisis.
Owalo’s statement came on the same day matatu operators agreed to call off their nation-wide strike after a meeting with other stakeholders, including Energy, Transport and Interior Cabinet Secretaries.
