Kenya's energy industry regulator has frozen pump prices for the September 15th to October 14th 2026 pricing cycle despite a steady rise in the cost of importing the products in August.

In its latest update to the public on Monday, the Energy and Petroleum Regulatory Authority (EPRA), the watchdog said retail prices for the commodity will remain unchanged even as the landed cost for diesel went up by 11.86 percent to $957.05 per cubic metre in August.

During the period under which the country procured the product, the landed cost of Kerosene increased by 9.71 percent to $1,000.87 per cubic metre. However, super petrol experienced a dip in landed costs with Epra saying the oil costs fell by 7.87 percent to $874.26 per cubic metre.

Starting Tuesday, 15th September, consumers in Nairobi will continue paying KSh214.03 on average per litre of petrol. Motorists and enterprises using diesel will pay KSh217.86 per litre of diesel while households using kerosene will continue parting with KSh191.38 per litre of the product.

During the period of procuring the various energy products, data shows that Brent Crude, which is the global benchmark for oil prices, averages at $85 per litre. With escalating tension and attacks in the Middle East, Brent crude prices have since increased to over $101 per barrel by last week.

Oil prices in Kenya have dealt a body blow to the economy since the start of an all-out war between the United States and Israel on Iran in late February.

Just last week, the U.S. announced it had struck five oil tankers belonging to Iran in the Gulf of Oman and in the area around Kharg Island in response to attempted missile attacks by Iranian forces on American warships.

EPRA noted that the government has extended the reduced eight per cent VAT rate on petroleum products, which was cut in half from 16 per cent in April, and drawn on the Petroleum Development Levy Fund to subsidise diesel and stabilise pump prices.

"The prices are inclusive of VAT, in line with the VAT Act, 2013 as read with Legal Notice No. 128 of 14th July 2026, the Finance Act, 2023, the Tax Laws (Amendment) Act 2024 and the revised rates for excise duty adjusted for inflation as per Legal Notice No. 194 of 2020," EPRA explained.

Analysis shows that taxes and levies account for between 26 and 35 per cent of Kenya’s retail fuel prices, with petrol contributing KSh74.29 per litre to state coffers, diesel KSh63.50 and kerosene KSh49.90. 

A Senate committee has urged the government to restructure the tax regime, arguing that VAT should not be applied on top of other levies, a “tax-on-tax” that amplifies the state’s take when global prices rise.

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