The Kenya Association of Manufacturers (KAM) has warned of severe economic decline and instability due to escalating fuel prices and ongoing public transport disruptions, which have crippled productivity. A nationwide matatu strike, now on its second day, follows failed negotiations between the government and transport operators over the record-high fuel costs.

• Fuel prices have reached unprecedented levels, with diesel at Sh242.92 per litre, representing an average increase of Sh80 between March and May.
• KAM stated that fuel prices impact numerous sectors, including transportation, food production, agriculture, and manufacturing, directly affecting the cost of living and business competitiveness.
• Negotiations between the government and matatu operators collapsed, with operators demanding a fuel price reduction of Sh30 to Sh46 per litre, significantly more than the government's proposed Sh10 decrease.