EPRA Retains Pump Prices Across Five Major Kenyan Towns Following Ksh4.6 Billion State Cushion

Motorists and consumers across Nairobi, Mombasa, Nakuru, Eldoret, and Kisumu will see the same maximum retail fuel prices for the November 15 to December 14, 2026 pricing cycle after the Energy and Petroleum Regulatory Authority (EPRA) opted to maintain the rates introduced during its October review.

The regulatory pause spares households, manufacturers, and transport operators from an immediate escalation in energy costs, even as international landed costs for refined petroleum products climbed across the board. To keep pump prices flat, the National Treasury deployed Ksh4.6 billion from the Petroleum Development Levy Fund (PDLF), absorbing upward price pressure that would have otherwise pushed Super Petrol up by Ksh8.58 per litre, Diesel by Ksh10.54, and Kerosene by Ksh1.16.

State Subsidy Cushion: The Ksh4.6 billion allocation from the Petroleum Development Levy Fund neutralized international market shocks, keeping maximum retail rates identical to the sharp upward adjustments recorded in mid-October 2026.

Rising Import Landed Costs: Between September and October 2026, the average landed cost of imported Super Petrol rose by 6.11 percent from US$977.55 to US$1,037.30 per cubic metre. Diesel posted the steepest jump, 6.73 percent (from US$1,065.38 to US$1,137.09 per cubic metre), while Kerosene edged up 0.71 percent from US$1,098.31 to US$1,106.11 per cubic metre.

Regional Logistics Differentials: Coastal towns continue to enjoy lower retail ceilings due to proximity to the Mombasa port entry point, whereas inland urban centres carry additional transport and pipeline tariff margins

Tax Inclusion: All gazetted maximum retail pump prices remain inclusive of the 8 percent Value Added Tax (VAT), in accordance with existing fiscal policy frameworks.

Because Kenya imports 100 percent of its petroleum requirements in refined form, domestic energy pricing remains acutely sensitive to global cargo benchmarks and shilling-dollar exchange rate movements. Without the Ksh4.6 billion stabilization buffer, Super Petrol in Nairobi would have breached Ksh235.54 per litre, while Diesel would have climbed to Ksh238.30 per litre.

For logistics operators, public service vehicle saccos, and agricultural transporters, the 30-day price freeze provides short-term cost predictability following October’s steep hikes. However, sustained volatility in international refined product markets means future pricing cycles will continue to hinge on both global crude movements and the stabilization fund.

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