Kenya has sharply increased retail fuel prices for the second consecutive month as the ongoing Iran conflict continues disrupting global oil supplies and pushing up energy costs across Africa.
The Energy and Petroleum Regulatory Authority announced new pump prices effective from May 15 to June 14, with diesel recording the largest increase. A litre of petrol in Nairobi will now sell for 214.25 Kenyan shillings, or about $1.66, up from 206.97 shillings. Diesel surged to 242.92 shillings per litre from 196.63 shillings, while kerosene remained unchanged at 152.78 shillings.
The latest increases follow another major adjustment in April when Kenya raised fuel prices by as much as 24.2 percent after crude oil prices surged due to instability in the Middle East.
Kenya imports nearly all of its petroleum products from Gulf suppliers, leaving the country highly exposed to disruptions linked to the conflict involving Iran and shipping instability around the Strait of Hormuz. Global supply concerns have pushed up imported fuel costs and placed additional pressure on energy dependent economies across Africa.
The fuel increases are expected to ripple through Kenya’s broader economy, raising transport fares, food prices and operating costs for businesses already dealing with inflationary pressure. Public transport operators have previously responded to similar increases by raising fares, while businesses reliant on diesel powered logistics face rising expenses.
Data released by Kenya’s energy regulator showed the landed cost of imported diesel rose sharply in recent months, reflecting higher global crude prices and supply disruptions linked to the Middle East conflict.
The Kenyan government has attempted to cushion consumers through support from the Petroleum Development Levy Fund, though analysts say the scale of global price increases is making it increasingly difficult to fully shield the domestic market.
Economists have warned the sustained rise in fuel prices could place new pressure on the Kenyan shilling and widen the country’s trade deficit since oil accounts for a significant share of Kenya’s import bill.
Kenya is among several African economies struggling with the economic fallout from the Middle East conflict as energy import costs continue rising. Countries heavily dependent on Gulf fuel supplies are facing growing concerns over inflation, transport costs and economic stability if disruptions in global oil markets persist.
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Emmanuel Abara Benson is a business journalist and editor covering artificial intelligence, global markets, and emerging technology.
He has previously worked with Business Insider Africa and Nairametrics, reporting on finance, startups, and innovation.
His work focuses on AI, digital economy, and global tech trends.
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