MWE Correspondent
Fuel prices in Kenya have surged to historic highs following a sharp increase in global crude oil prices and rising shipping costs, intensifying pressure on households and businesses across the region.
The latest adjustment, announced by the Energy and Petroleum Regulatory Authority (EPRA), took effect on April 15, 2026, pushing petrol and diesel prices to their highest levels ever recorded in the country. The development reflects mounting global energy market volatility, with ripple effects now being felt across East Africa.
According to EPRA, the increase has been driven primarily by a rise in landed costs—the total expense of importing fuel, including purchase price, freight, and insurance. These costs have climbed significantly in recent months due to disruptions in global supply chains and heightened geopolitical tensions affecting key maritime routes.
One of the most critical pressure points has been the Strait of Hormuz, a vital corridor through which a substantial portion of the world’s oil supply passes. Ongoing tensions in the region have increased shipping risks, leading to higher freight charges and insurance premiums for oil shipments destined for global markets, including East Africa.
The impact is clearly reflected in regional fuel price comparisons, with Kenya now recording the highest pump prices in East Africa.
Fuel prices per litre across the region, converted into Tanzanian shillings, currently stand as follows:
- Kenya — Tsh 4,139
- Rwanda — Tsh 4,079
- Tanzania — Tsh 3,820
- Uganda — Tsh 3,635
The data places Kenya at the top, followed closely by Rwanda, while Tanzania and Uganda maintain relatively lower, though still elevated, price levels.
Energy analysts note that Kenya’s position is partly influenced by its taxation structure, currency pressures, and reliance on imported refined petroleum products. While all East African countries are affected by global price movements, differences in subsidies, exchange rates, and regulatory frameworks contribute to the variation in pump prices.
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The surge comes at a time when global oil markets are experiencing renewed instability. Supply disruptions linked to production constraints and geopolitical tensions have tightened availability, while shipping bottlenecks have added further strain. As a result, countries that depend heavily on imports—such as those in East Africa—are particularly vulnerable to price shocks.
For consumers, the implications are immediate. Higher fuel prices typically translate into increased transportation costs, which in turn raise the price of goods and services. This creates inflationary pressure across multiple sectors, from food distribution to manufacturing and logistics.
Businesses, especially those reliant on transport and energy-intensive operations, are also expected to feel the strain. Industry stakeholders warn that sustained high fuel costs could slow economic activity and reduce profit margins, particularly for small and medium-sized enterprises.
Regionally, the trend signals a broader challenge. East African economies, many of which are still recovering from previous global shocks, now face renewed pressure from energy costs that are largely beyond domestic control. Policymakers may be forced to consider measures such as tax adjustments, targeted subsidies, or strategic reserves to cushion the impact.
Despite the current surge, experts caution that fuel prices remain highly sensitive to global developments. Any easing of geopolitical tensions or stabilization in supply chains could lead to price corrections. However, for now, the outlook remains uncertain.
