Kenya's energy regulator has announced price cuts for Super Petrol, Diesel and Kerosene by KSh2.00, KSh1.00 and KSh1.00 per litre respectively, for the next month.
- •In Nairobi, Super Petrol will now retail at KSh182.52 per litre, Diesel at KSh170.47, while Kerosene will sell at KSh153.78.
- •Despite the reduction, the relief will be barely perceptible for consumers, with fuel prices still reflecting a heavy tax burden.
- •Industry data shows that taxes and statutory levies now account for a significant share of the final pump price, limiting the extent to which international oil price declines can translate into meaningful domestic relief.
The current pump prices are inclusive of the 16 per cent Value Added Tax (VAT), excise duty rates adjusted for inflation under Legal Notice No.194 of 2020, as well as measures introduced under the Finance Act 2023 and the Tax Laws (Amendment) Act 2024.
Diesel prices, which have a direct bearing on transport, manufacturing, agriculture and electricity generation, remain above KSh170 per litre. This continues to exert upward pressure on matatu fares, food distribution costs and factory input prices.
Kerosene, widely used by low-income households, also remains elevated despite the cut, raising concerns over energy affordability for vulnerable consumers already strained by high food and housing costs.
KRA Tightens Compliance in Fuel Retail Sector
Fuel retailers are facing increasing regulatory and compliance obligations, with the Kenya Revenue Authority (KRA) intensifying enforcement of electronic tax invoicing requirements. The deadline to implement the eTIMS Fuel Station System across all retail outlets lapsed on June 30, 2025.
The eTIMS Fuel Station System is a sector-specific solution designed to enable seamless, real-time invoicing for every fuel transaction. The system integrates directly with KRA through a forecourt controller and existing point-of-sale platforms, improving accuracy, transparency and efficiency in tax reporting.
KRA say the technology is aimed at sealing revenue leakages in the fuel value chain, a sector that accounts for a substantial share of domestic tax collections.
