Kenya’s fuel prices will remain unchanged until the next review by the Energy and Petroleum Regulatory Authority (EPRA) scheduled for June 14, 2026, Treasury CS John Mbadi has said.
Speaking during a media interview on Monday amid mounting pressure over rising fuel costs and transport disruptions across the country, the Mbadi said the government was closely monitoring developments in the petroleum market while weighing the broader economic implications of any future adjustments.
“The government is monitoring the situation. We have the next review by June 14,” Mbadi said during the interview.
His remarks come at a time when Kenya is facing heightened public concern over fuel prices, with sections of the transport sector staging protests and temporary disruptions over the rising cost of diesel and petrol. The demonstrations have affected commuters in Nairobi and several urban centres, reigniting debate over fuel taxation, subsidies, and the country’s dependence on imported petroleum products.
Mbadi defended the government’s current approach, arguing that the state has already cushioned consumers from steeper increases that would otherwise have resulted from volatility in global oil markets.
The Treasury CS further indicated that the government and relevant agencies were reviewing the broader impact of fuel prices on households, transport operators, and businesses before the next EPRA pricing cycle.
His comments also point to growing concern within government over the economic fallout of prolonged transport disruptions. Kenya’s economy remains highly sensitive to fuel costs because petroleum products directly affect transport, electricity generation in some sectors, food distribution, manufacturing, and logistics.
The latest developments place fresh attention on EPRA’s monthly fuel pricing mechanism, which factors in global crude oil prices, exchange rates, taxes, levies, freight charges, and distribution costs. Fuel prices in Kenya are reviewed every month, with new pump prices typically taking effect on the 15th day of each month.
Pressure on Households and Businesses
The decision to maintain current fuel prices until mid-June may offer temporary predictability for consumers and businesses already grappling with a high cost of living.
Fuel remains one of the most politically and economically sensitive commodities in Kenya because of its ripple effect across nearly every sector of the economy. When pump prices rise, transport fares often increase almost immediately, leading to higher costs for food deliveries, school transport, logistics, and general business operations.
For households, especially in urban areas such as Nairobi, fuel-linked inflation has become a major concern in recent years. Public service vehicle operators often pass additional fuel costs directly to commuters, while manufacturers and distributors factor higher diesel prices into the cost of goods.
Analysts note that maintaining prices at current levels could help stabilize inflationary pressures in the short term, particularly as the country approaches the mid-year economic cycle when schools reopen and agricultural supply chains intensify.
However, economists also caution that keeping prices steady may not necessarily mean reduced pressure on consumers if global oil prices continue rising.
Global Oil Prices Still a Major Risk
Mbadi’s remarks come against the backdrop of continued uncertainty in global energy markets.
International oil prices have remained volatile due to geopolitical tensions, shipping disruptions, and fluctuations in global demand. Kenya, being a net importer of petroleum products, remains exposed to these external shocks.
The Treasury CS reportedly acknowledged that global factors continue to heavily influence local pricing, arguing that Kenya cannot isolate itself from international market realities.
One of the biggest challenges for Kenya is the impact of the exchange rate. Since petroleum imports are paid for in US dollars, any weakening of the Kenyan shilling automatically increases the landed cost of fuel.
Although the shilling has shown relative stability in recent months compared to the sharp depreciation witnessed in 2023 and 2024, foreign exchange pressures still remain a critical factor in fuel pricing.
Treasury CS John Mbadi Ignites Tax Debate
Mbadi’s comments are also likely to reignite debate around fuel taxes and levies.
Fuel in Kenya attracts multiple charges, including VAT, the Road Maintenance Levy, Petroleum Development Levy, Railway Development Levy, and other regulatory costs. Over the years, critics have argued that taxes account for a significant portion of pump prices.
At the same time, the Treasury has maintained that fuel-related taxes are critical for financing infrastructure, debt obligations, and public expenditure.
This creates a difficult balancing act for government policymakers.
Reducing taxes could provide immediate relief to consumers but would also reduce revenue collection at a time when Kenya continues to face pressure to narrow its fiscal deficit and manage public debt obligations.
The National Treasury, led by John Mbadi, has repeatedly emphasized the need for fiscal discipline and sustainable revenue generation as part of broader economic reforms.
Another notable aspect of Mbadi’s remarks was his call for improved communication from energy authorities ahead of future fuel reviews.
According to reports, the CS urged EPRA and the Ministry of Energy to provide clearer projections and explanations to the public in order to reduce uncertainty and speculation.
That position reflects growing criticism from consumers and transport stakeholders who argue that fuel pricing adjustments are often announced without sufficient public understanding of the underlying calculations.
Improved transparency around pricing formulas, import costs, and government interventions could help ease tensions and restore confidence among consumers.
Still, the assurance from John Mbadi that prices will remain unchanged until the next EPRA cycle provides temporary certainty for millions of Kenyan consumers, transport operators, and businesses navigating an increasingly fragile economic environment.
