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In yet another blow to struggling households and businesses, the Energy and Petroleum Regulatory Authority (EPRA) has increased pump prices once again, pushing super petrol to KSh 186.31, diesel to KSh 171.58, and kerosene to KSh 156.58 in Nairobi. The official explanation: rising global oil prices driven by tensions in the Middle East.
But behind the technical jargon and geopolitics, Kenyans are bearing the real brunt—especially those in low-income and informal sectors.
Digital taxi-hailing drivers were among the first to feel the sting. Michael, a Nairobi-based Uber driver, painted a grim picture: “You fuel for KSh 1,000 and barely make that back,” he shared, adding that the drop in passenger demand is now worse than it was during the pandemic. Many drivers are parking their cars, unable to cover fuel costs, and a major strike is in the works as operators push app companies for better pay.
The ripple effects don’t stop there. Bolt, Uber, and Little Cab drivers now find themselves stuck in an unsustainable grind, absorbing higher operational costs with no change in commission rates.
Unlike previous increases, this particular hike is being seen as economically toxic because of its multiplicative impact. According to Martin Chomba, Chair of the Petroleum Outlets Association of Kenya (POAK), the new prices will worsen inflationary pressures by affecting almost every sector.
And he’s right.
Public transport fares, courier services, and long-distance trucking are expected to go up within weeks. Matatus and buses are already quietly adjusting fares, while logistics firms are beginning to revise their pricing for deliveries and cargo handling.
Food is perhaps the most immediate casualty. Higher fuel prices drive up the cost of farm inputs, irrigation, and transport — all of which lead to pricier goods on supermarket shelves. The cost of maize flour (unga) has already risen to KSh 160.22 for a 2kg packet, while sugar is now averaging KSh 184.13 per kilogram. Cooking oil and fresh produce aren’t far behind.
The Kenya Power and Lighting Company (KPLC) uses the Fuel Cost Charge (FCC) to adjust electricity bills. With the fuel hike, households and manufacturers will pay more for lighting and powering their homes, equipment, and factories.
The construction sector, already struggling with supply chain delays and high cement prices, now faces higher transportation and energy costs. This will make homes, roads, and infrastructure projects even more expensive.
While the national inflation rate was relatively stable at 3.8% as of June 2025, economists warn that this fuel-driven surge could send inflation soaring in Q3. The cumulative effect on food, transport, power, and rent could tip thousands of families into deeper financial strain.
Kenyans are calling for transparency and policy reform. Many citizens feel the government is weaponizing fuel as a cash cow through taxes and levies. There are growing demands to reintroduce the Open Tender System (OTS) for fair oil pricing and end opaque government-to-government oil deals that offer little relief at the pump.
Unless these structural issues are addressed, the pattern is clear: fuel hikes today, poverty tomorrow.
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