Parliament Urged to Reform Fuel Pricing Ahead of September 14 EPRA Review
With global oil prices surging, Parliament must overhaul Kenya's fuel tax and pricing system before the September 14 EPRA review to protect consumers.
By John Mtongoi Newsroom
August 22, 2026
2 min read
Kenya faces escalating fuel costs as Brent crude nears $94 per barrel amid geopolitical tensions and shipping challenges in the Middle East. These global developments translate into immediate hardships for Kenyan households, intensifying inflation and transport costs.
Recently, the Energy and Petroleum Regulatory Authority (EPRA) reduced diesel prices by five shillings, but this relief was offset by a nearly five-shilling rise in electricity tariffs. With inflation at 6.5%, driven largely by a 15.6% increase in transport expenses, the current reactive approach to fuel pricing is failing to provide lasting solutions.
Need for Structural Reforms
Parliament must seize the upcoming EPRA price review on September 14 to implement comprehensive reforms. Key measures include:
- Tax Rationalization: Simplify and reduce overlapping levies such as the Fuel Levy, VAT, Anti-Adulteration Levy, and Petroleum Regulatory Levy. Temporarily suspending certain taxes during global crude price surges above $85 can ease pump prices without severely impacting government revenue.
- Petroleum Development Fund Oversight: Introduce strict legislative controls to ensure transparency and create automatic triggers for price stabilization when global oil prices hit critical levels, minimizing political delays.
- Strategic Petroleum Reserve: Invest in a 90-day national reserve to buffer against supply shocks, enabling Kenya to buy crude during low-price periods and release stocks when prices peak, thus stabilizing domestic fuel costs.
- Targeted Energy Rebates: Support agricultural transporters and local manufacturers with energy subsidies to prevent supply chain disruptions that drive up food inflation, currently at 9%.
Relying solely on EPRA’s incremental price adjustments and the Central Bank’s monetary policies is insufficient to counter global energy volatility. Parliament must act decisively to protect Kenyan households from the cascading effects of rising fuel and electricity costs.
