Oil & Gas

Kenya's Energy and Petroleum Regulatory Authority (EPRA) announced a sharp increase in fuel prices effective from July 15 to August 14, 2025, with petrol rising by KSh 8.99, diesel by KSh 8.67, and kerosene by KSh 9.65 per litre. As a result, Nairobi residents now pay KSh 186.31 for petrol, KSh 171.58 for diesel, and KSh 156.58 for kerosene, sparking public outrage and criticism over the government's failure to control the rising cost of living.

In contrast, Tanzania’s Energy and Water Utilities Regulatory Authority (EWURA) provided some relief by reducing fuel prices on July 1, citing adjustments from the new Finance Act. Petrol in Dar es Salaam dropped slightly to TSh 2,885 (KSh 141.91), diesel to TSh 2,767 (KSh 137.54), and kerosene to TSh 2,629 (KSh 130.68), making Tanzania’s fuel costs significantly lower than Kenya’s. This move highlights Tanzania's more consumer-friendly fuel policy amid global price volatility.

Meanwhile, Uganda experienced a price surge in June, with petrol jumping from USh 4,900 (KSh 176.40) to USh 5,050 (KSh 181.80) per litre in some regions. The Uganda National Oil Company (UNOC) attributed the increase to logistical delays along the Kenyan supply line, through which 90% of Uganda’s fuel is imported. This dependency on Kenya’s pipeline infrastructure exposes Uganda to Kenya’s internal price dynamics and delays.

The sharp price hike in Kenya has triggered backlash from citizens on social media, who feel betrayed by the government-to-government deal with Gulf nations that was promised to keep fuel prices stable. Many have blamed President William Ruto’s administration for worsening the cost-of-living crisis, arguing that current fuel prices contradict the promises of economic relief and reform.