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EPRA Cuts Petrol by Sh9.37, Diesel by Sh10.21 After VAT Slash to 8pc
Kenya has seen a significant reduction in fuel prices following a decision by the National Treasury to slash Value Added Tax (VAT) on petroleum products from 16% to 8%. A litre of petrol will now retail at Sh197.60 in Nairobi, down by Sh9.37, and diesel at Sh196.63, a decrease of Sh10.21. The Energy and Petroleum Regulatory Authority (EPRA) announced these reductions, offering relief to consumers. However, regional disparities have emerged as Kenya continues to pay considerably more for fuel than its neighboring countries. Ride-hailing drivers in Nairobi are facing significantly reduced earnings following recent fuel price hikes, while commuters across Kenya are facing immediate difficulties as transport fares have been increased following the surge in fuel prices that took effect at midnight Tuesday.
Siaya Governor Orengo Slams EPRA Over Fuel Price Hike
Siaya Governor James Orengo has slammed the Energy and Petroleum Regulatory Authority (EPRA) over fuel price increases, demanding full transparency in the pricing system. In response, MP Babu Owino has rallied Kenyans to get ready for mass protests against the fuel price hike. Meanwhile, Kenyans are facing record-high fuel prices with petrol reaching a historic peak of KSh 206.97, and prices for manufactured goods in Kenya are projected to increase by as much as 20%.
CBK Sees Inflation Peaking at 6.2pc in July on Iran War
The Central Bank of Kenya (CBK) projects inflation could peak at 6.2 percent in July 2026 due to the ongoing Iran conflict, which is driving up oil prices. Meanwhile, China's economy has demonstrated stronger-than-expected growth of 5% in the first quarter, defying global economic disruptions including the conflict involving Iran. The CBK's projection comes as the Kenyan government proposes a reduction in Value Added Tax (VAT) on petroleum products, aiming to alleviate consumer costs.
