Kenyans are facing another squeeze on their household budgets following a sharp increase in fuel prices, with the Matatu Owners Association directing operators to raise public transport fares by 10% in response to higher operating costs. The changes threaten to increase the cost of commuting, transporting goods and delivering essential services, adding to the financial pressure on households and businesses.
In its latest monthly review announced on October 14, the Energy and Petroleum Regulatory Authority (EPRA) raised the maximum retail price of super petrol by KSh12.93 per litre, diesel by KSh9.90 and kerosene by KSh28.49. The new prices took effect on October 15 and will remain in force until November 14, 2026. In Nairobi, super petrol now retails at a maximum of KSh226.96 per litre, diesel at KSh227.76 and kerosene at KSh219.87. <Cite refs={[“turn902867search3″,”turn902867search9”]}/>
The increases come amid rising international fuel import costs linked to instability in the Middle East, which has disrupted supply chains and pushed up petroleum prices. EPRA’s latest review reflects higher landed costs of imported petroleum products, highlighting Kenya’s exposure to external market shocks despite the country’s domestic fuel pricing framework. <Cite refs={[“turn902867search6″,”turn902867news21”]}/>
The immediate concern for commuters is the Matatu Owners Association’s directive to its members to increase fares by 10%. Association president Albert Karakacha said operators had consulted and could no longer absorb the rising costs while maintaining profitable businesses. The proposed increase means passengers could pay more for their daily journeys to work, school and other essential destinations. <Cite refs={[“turn902867search4″,”turn902867search14”]}/>
For example, a passenger currently paying KSh100 for a journey could pay KSh110 if the full 10% increase is applied. Someone spending KSh200 daily on two journeys could see that cost rise to KSh220 per day. Across 22 working days, this would increase monthly commuting expenses from KSh4,400 to KSh4,840, adding KSh440 to an individual’s monthly transport budget. The actual fares will depend on the routes and adjustments implemented by operators.
Beyond public transport, the higher cost of diesel could feed into the price of food and other consumer goods because trucks and other commercial vehicles rely on fuel to move products from farms, factories, ports and warehouses to retailers. Businesses may respond by passing some of the additional costs to consumers, potentially increasing prices across several sectors. The kerosene increase could also weigh heavily on households that depend on it for cooking and lighting.
The timing is particularly significant for households already balancing transport, rent, food, electricity and school-related expenses. A 10% increase in fares may appear modest in isolation, but its cumulative effect can be substantial for low-income earners and workers who commute daily. Employers may also face pressure to review transport allowances, while businesses dependent on deliveries could experience higher distribution costs.
The latest developments therefore extend beyond the petrol station. They raise questions about the resilience of household budgets, the cost of doing business and the wider impact of imported fuel prices on Kenya’s cost of living. As the new prices take effect, commuters and businesses will be watching closely to see how widely the proposed fare adjustments are implemented and whether the higher fuel costs translate into further increases in the prices of everyday goods and services.
