Fuel Price Hike to Trigger Fare Increase as Transporters Warn of Rising Costs
Rising fuel prices are set to drive up transport fares nationwide, increasing the cost burden on commuters and businesses alike.
Matatus line up at Greenpark Terminus in Nairobi as transport operators brace for fare adjustments following rising fuel costs. Photo/Courtesy
By Ruth Sang
Transport costs are set to rise across the country after the Kenya Transporters Association Ltd announced an impending adjustment in fares following a sharp increase in fuel prices for the period between April 15 and May 14, 2026.
According to the Energy and Petroleum Regulatory Authority (EPRA), the price of Super Petrol has increased by Ksh28.69 per litre, while Diesel has gone up by Ksh40.30 per litre. The price of Kerosene, however, remains unchanged.
EPRA attributed the latest adjustments to a rise in landed fuel costs between February and March, reflecting higher import prices driven by global market trends.
In a statement issued on Wednesday, KTA warned that the surge in diesel prices—now retailing at Ksh203 per litre—will significantly raise operational expenses in the transport sector, making fare increases unavoidable.
“Members are reminded that fuel constitutes the single largest cost component in road freight transport, accounting for approximately 55% of total operating costs,” the association said.
Transporters have now been advised to reassess their cost structures and adjust pricing accordingly, while also engaging customers and contractual partners on the expected changes.
EPRA further explained that the revised fuel prices are influenced by a combination of rising international petroleum costs, fluctuations in the exchange rate, and the application of statutory taxes under the Value Added Tax (VAT) framework.
In a move aimed at cushioning consumers, the regulator announced a reduction in VAT on Super Petrol, Diesel, and Kerosene from 16 percent to 13 percent.
Under the new pricing structure, motorists in Nairobi will pay a maximum of Ksh206.87 per litre for Super Petrol and Ksh206.84 for Diesel, while Kerosene will retail at Ksh152.78.
In Mombasa, Super Petrol will cost Ksh203.69, Diesel Ksh203.56, and Kerosene Ksh149.49 per litre. Meanwhile, in Kisumu, the prices stand at Ksh206.85 for Super Petrol, Ksh207.06 for Diesel, and Ksh153.03 for Kerosene.
With fuel accounting for a significant share of transport costs, industry players say the latest price adjustments are likely to have a ripple effect across the economy, impacting both commuters and the cost of goods and services.
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