Middle East conflict drives fuel prices in Kenya

The ripple effects of the ongoing conflict in the Middle East have hit Kenyan consumers hard, following a sharp increase in fuel prices announced by the country's Energy and Petroleum Regulatory Authority on Tuesday.

In its latest review covering the period between April 15 and May 14, 2026, the authority raised fuel prices significantly, with diesel recording the highest jump of 24.1 percent while petrol prices rose by 16.2 percent, pushing the cost of both super petrol and diesel to over $1.59 per liter in Nairobi.

In a statement signed by Joseph Oketch, acting director-general of the authority, the regulator maintained the price of kerosene to retail at a maximum price of $1.18 in the capital city of the East African nation.

Despite the increases that have been attributed to a surge in global oil prices, driven largely by the US-Israel attack on Iran, Kenya has taken a step to cushion consumers from high landed cost of petroleum products.

"Effectively, the value added tax rate on super petrol, diesel and kerosene has been reduced from 16 to 13 percent. The government will further cushion the consumers through the Petroleum Development Levy Fund by utilizing approximately $48 million to stabilize the pump prices," Oketch said.

Kenya imports all its refined petroleum products, with prices determined by international market benchmarks, leaving the country exposed to global shocks.

Oketch has, however, assured Kenyans of the authority's commitment to the observance of fair competition and protection of the interests of both consumers and investors in the energy and petroleum sectors.