Commuters across Kenya are set to pay higher fares after transport operators announced price increases following a sharp rise in fuel costs for the period between April 15 and May 14, 2026.
The adjustments come after the Energy and Petroleum Regulatory Authority raised the price of super petrol by Sh28.69 per litre and diesel by Sh40.30 per litre, citing increased landed costs, global price shifts, and exchange rate pressures. Kerosene prices remained unchanged.
In response, both the Kenya Transporters Association and matatu operators said the surge in fuel prices—particularly diesel—has significantly raised operating costs, making fare hikes unavoidable.
“Fuel is a major component in our daily operations. With the new prices, we cannot sustain current fares,” said Matatu Owners Association chairman Albert Karakacha, announcing a 30 per cent increase in fares.
The Matatu Owners Association also warned of a direct impact on transport costs, noting that diesel prices had jumped sharply, driving up expenses across the sector.
“Members are reminded that fuel constitutes the single largest cost component in road freight transport, accounting for approximately 55 per cent of total operating costs,” the association said.
Using its cost analysis, the association estimates that the increase in fuel prices will push overall transport operating costs up by between 13 and 14 per cent. It advised members to review their pricing structures and engage clients to reflect the new cost realities.
“Members are advised that such a substantial rise in input costs cannot be absorbed sustainably,” the statement read.
Energy and Petroleum Regulatory Authority said the latest price adjustments reflect a combination of rising international petroleum prices, higher import costs, and the application of statutory taxes under the Value Added Tax framework. In an effort to cushion consumers, the regulator reduced VAT on petroleum products from 16 per cent to 13 per cent.
Under the new pricing, a litre of super petrol in Nairobi now retails at Sh206.87, diesel at Sh206.84, and kerosene at Sh152.78. Prices vary slightly across regions, with Mombasa and Kisumu recording marginal differences.
Despite the tax relief, the fuel hike is expected to have a ripple effect across the economy, particularly in transport, manufacturing, and agriculture, where fuel is a key input.
Operators maintain that the fare increases are necessary to keep businesses afloat, but the move is set to pile pressure on households already grappling with a rising cost of living.
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