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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 to 8 percent. A litre of petrol now retails at Sh197.60 in Nairobi, down by Sh9.37, while diesel stands at Sh196.63, a decrease of Sh10.21. This comes after the government proposed an 8 percent fuel VAT cut for three months to alleviate consumer costs. However, Kenya is experiencing significant regional disparities in fuel prices, paying considerably more than its neighbouring countries. Kenyans are also facing a significant increase in the cost of living as businesses across various sectors have immediately hiked their own prices following the fuel price changes.
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 hikes, 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 increases. Kenyans are facing record-high fuel prices with petrol reaching a historic peak of KSh 206.97. Prices for manufactured goods in Kenya are projected to increase significantly, potentially by as much as 20 percent, impacting consumers and household budgets across the country.
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. Deputy President Kithure Kindiki stated that the recent increase in fuel prices is not due to government policy but is a consequence of the ongoing war in Iran. Meanwhile, China's economy has demonstrated stronger-than-expected growth of 5 percent in the first quarter, defying global economic disruptions including the conflict involving Iran.
BasiGo Begins Local Assembly of Electric Vans Targeting Matatus
Electric vehicle assembler BasiGo has commenced local assembly of electric vans in Kenya, targeting the matatu sector and other transport services. The Tanzanian government has cancelled 40 mineral exploration licenses due to the holders' failure to develop the sites, a move aimed at improving resource governance and boosting the economy. Additionally, the Kenyan government is formalizing its hidden mineral economy by ratifying hundreds of artisanal mining groups, aiming to capture lost revenues and increase oversight in the sector.
