EPRA explains why petrol and diesel prices remain unchanged despite higher import costs

Kenyan consumers might have avoided a fuel price hike, but they are unlikely to experience immediate relief in their daily expenses. The Energy and Petroleum Regulatory Authority (EPRA) has frozen petrol, diesel and kerosene prices, but this measure does not erase the economic challenges households already face. Transport, food and household energy costs have already increased, while fuel prices remain notably higher in some regions.

Despite EPRA retaining the maximum retail prices for November and December 2026, the government had to use Ksh4.6 billion from the Petroleum Development Levy Fund to avert a further price surge. The freeze shields consumers from a temporary increase, but it does not reverse previous price hikes or alleviate broader inflationary pressures.

The latest Kenya National Bureau of Statistics (KNBS) report reveals that annual inflation reached 7.3 per cent in October 2026, with food and non-alcoholic beverages, transport, and housing, water, electricity, gas and other fuels driving the rise. A significant portion of the consumer price index – more than 57 per cent – is attributed to these three categories.

Between September and October, monthly data showed a 6 per cent and 4.4 per cent increase in petrol and diesel prices, respectively, while kerosene prices jumped by 14.7 per cent. These figures demonstrate that fuel costs already affect transport fares and other services. For instance, a Kabarnet-Nakuru bus fare rose from Ksh600 to Ksh650 (8.3 per cent), and a Westlands-Kangemi city bus and matatu fare increased from Ksh40 to Ksh50 (25 per cent).

Boda boda trips between Siaya town and Awelo climbed from Ksh50 to Ksh70 (40 per cent). These examples illustrate the pressure on commuters, even before another fuel price rise occurs. Workers, traders, and families reliant on public transport face higher fares, leaving less money for essential expenses. While the EPRA freeze protects consumers from an immediate increase, it does not undo past price increases or ease overall inflation.

The higher fuel prices in certain regions, such as Mandera, add to the burden for households and businesses that must travel further or operate machinery. Despite the stabilisation, Kenyans will continue to encounter elevated transport fares, food prices, and energy expenses, as the Ksh4.6 billion government support only provides a temporary reprieve from a further pump-price shock.