Nationwide Fare Hikes as Fuel Price Surge Forces Transport Sector to Adjust

Transport operators and matatu saccos across Kenya have announced an immediate increase in fares following the latest fuel price review by the Energy and Petroleum Regulatory Authority (EPRA), which came into effect at midnight.

The decision marks a significant shift in the cost of public transportation, with commuters expected to bear the brunt of rising operational expenses.

The fare adjustments come in response to EPRA’s April-to-May 2026 pricing cycle, which saw a sharp increase in the cost of key petroleum products.

Diesel, the primary fuel used in public service vehicles and freight transport, recorded the most notable hike, triggering widespread concern across the transport and logistics sectors.

In its review released on Tuesday, April 14, EPRA raised the price of Super Petrol by Ksh28.69 per litre and Diesel by Ksh40.30 per litre, while kerosene prices remained unchanged.

Despite the stability in kerosene prices offering slight relief to households, the steep rise in diesel and petrol costs has created immediate pressure on both transport operators and consumers.

Following the adjustment, Super Petrol, Diesel, and Kerosene are now retailing at Ksh206.97, Ksh206.84, and Ksh152.78 per litre, respectively. These new prices will remain in force from April 15 to May 14, 2026, setting the tone for increased living and business costs over the coming weeks.

In the wake of the announcement, the Kenya Transporters Association (KTA) issued a directive to its members, warning that the surge in diesel prices would inevitably translate into higher transport costs.

The association emphasized that the increase could not be absorbed internally without jeopardizing the sustainability of transport businesses.

According to KTA, diesel prices have surged by approximately Ksh40 per litre, representing a 24.5 percent increase. This spike has been described as a major disruption to the cost structure of road freight services, where fuel constitutes a significant portion of operational expenses.

The association further explained that fuel accounts for nearly 55 percent of total operating costs in the road transport sector.

As such, any fluctuation in fuel prices has an immediate and far-reaching impact on pricing models, affecting everything from passenger fares to the cost of moving goods across the country.

Using its internal cost analysis framework, KTA estimates that the latest fuel hike will result in an overall increase of between 13 and 14 percent in transport operating costs. This, in turn, has necessitated urgent adjustments in pricing to ensure business continuity.

“Members are advised that such a substantial rise in input costs cannot be absorbed sustainably,” the association stated. “It is therefore necessary for all members to immediately review their cost structures and adjust transport rates accordingly to reflect the new cost realities.”

Transport operators have also been encouraged to maintain transparency with their clients and contractual partners by clearly communicating the reasons behind the fare increments. KTA noted that open engagement would be critical in maintaining trust, ensuring service continuity, and preventing disruptions within supply chains.

On the public transport front, Matatu Owners Association President Albert Karakacha confirmed that fare increases would take effect immediately. He noted that operators had been engaged in consultations and had reached a consensus that adjustments were unavoidable.

“We have been consulting, and from tomorrow, we will push the prices for bus fares upwards,” Karakacha said. “If you look at the new prices, diesel has really gone up, and that is what we use most. That cost has to be passed on to the common mwananchi.”

The ripple effect of the fuel price hike is expected to extend beyond the transport sector, potentially driving up the cost of goods and services nationwide as businesses adjust to higher logistics expenses.

Meanwhile, EPRA has defended the price adjustments, noting that the government has taken steps to cushion consumers from the full impact of global fuel market dynamics. Among the measures implemented is a reduction in Value Added Tax (VAT) on petroleum products from 16 percent to 13 percent.

Additionally, the government has deployed approximately Ksh6.2 billion from the Petroleum Development Levy to stabilize fuel prices and mitigate the burden on consumers.

However, despite these interventions, the sharp increase in diesel prices continues to pose significant challenges for both transport operators and ordinary Kenyans.

As the new fuel prices take effect, the coming weeks are likely to see increased pressure on household budgets, with commuters, businesses, and the broader economy adjusting to the realities of higher transport and energy costs.

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