{"id":141164,"date":"2026-05-15T15:02:50","date_gmt":"2026-05-15T15:02:50","guid":{"rendered":"https:\/\/chezaspin.com\/blog\/kncci-protests-diesel-price-hikes-citing-variance-to-global-crude-oil-increases\/"},"modified":"2026-05-15T15:02:50","modified_gmt":"2026-05-15T15:02:50","slug":"kncci-protests-diesel-price-hikes-citing-variance-to-global-crude-oil-increases","status":"publish","type":"post","link":"https:\/\/chezaspin.com\/blog\/kncci-protests-diesel-price-hikes-citing-variance-to-global-crude-oil-increases\/","title":{"rendered":"KNCCI protests diesel price hikes citing variance to global crude oil increases"},"content":{"rendered":"

NAIROBI, Kenya, May 15 \u2014 The Kenya National Chamber of Commerce and Industry (KNCCI) has challenged the scale of the latest fuel price increases, arguing that domestic cost build-ups are amplifying the impact of global crude oil shocks and weakening Kenya\u2019s business competitiveness.<\/strong><\/p>\n

In a statement issued after EPRA announced new fuel prices for the May 15 to June 14 cycle, KNCCI President Dr Erick Rutto said Kenya\u2019s diesel prices rose disproportionately compared to movements in international crude oil markets.<\/p>\n

The Chamber noted that while global crude oil prices increased by approximately 10.7 per cent during the April\u2013May review period, Kenya\u2019s diesel prices rose by 23.5 per cent over the same cycle.<\/p>\n

\u201cThis points to the continued role of domestic cost buildup, including taxes, levies, exchange-rate effects, margins and landed product costs,\u201d KNCCI stated on Friday.<\/p>\n

The Chamber said the latest diesel increase of Sh46.29 per litre to Sh242.92 is particularly concerning because diesel serves as the backbone of transport, agriculture, logistics, construction, manufacturing, and general trade.<\/p>\n

KNCCI further warned that Kenya now remains among the highest-cost fuel markets within the East African region, eroding the country\u2019s competitiveness against neighbouring economies.<\/p>\n

According to comparative regional pricing released by the Chamber, Kenya\u2019s diesel price of Sh242.92 per litre is significantly higher than Uganda\u2019s Sh174.37, Tanzania\u2019s Sh211.40, Burundi\u2019s Sh175.20, and Ethiopia\u2019s Sh176.30.<\/p>\n

\u201cThe comparison shows that Kenya\u2019s diesel price is materially higher than key regional competitors, including Uganda and Tanzania,\u201d the Chamber stated.<\/p>\n

\nNdindi Nyoro proposes VAT cuts, levy removal to lower fuel prices below Sh190<\/a>\n<\/div>\n

KNCCI argued that while geopolitical tensions in the Middle East continue to exert pressure on global oil markets, domestic taxes, levies, exchange rate pressures, landed product costs, and other local charges are worsening the burden on businesses and households.<\/p>\n

\u201cThe global crude oil shock is real,\u201d KNCCI stated, adding that crude oil prices are currently estimated to be between 41 and 51 per cent above pre-conflict levels.<\/p>\n

However, the Chamber maintained that domestic cost drivers continue to magnify the impact beyond global market movements.<\/p>\n

KNCCI warned that the widening fuel cost differential could weaken Kenya\u2019s attractiveness as a regional logistics, manufacturing, and trade hub.<\/p>\n

The Chamber urged the government to review and rationalize fuel taxes and levies, particularly on diesel, while strengthening transparent fuel price stabilization mechanisms.<\/p>\n

It also called for EPRA to publish clearer fuel price build-ups during every pricing review cycle to improve transparency and public understanding of domestic cost components.<\/p>\n

In addition, KNCCI urged the government to accelerate plans for a modern local refinery and expand energy trade partnerships with African oil-producing countries to reduce reliance on expensive imported refined fuel.<\/p>\n

The Chamber lauded recent refinery investment announcements by the Dangote Group, saying regional refining expansion could help lower fuel import costs across Africa.<\/p>\n

KNCCI maintained that urgent intervention is necessary to cushion households, protect businesses, and preserve Kenya\u2019s economic resilience amid mounting fuel-driven inflationary pressure.<\/p>","protected":false},"excerpt":{"rendered":"

NAIROBI, Kenya, May 15 \u2014 The Kenya National Chamber of Commerce and Industry (KNCCI) has challenged the scale of the latest fuel price increases, arguing that domestic cost build-ups are amplifying the impact of global crude oil shocks and weakening Kenya\u2019s business competitiveness. In a statement issued after EPRA announced new fuel prices for the […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-141164","post","type-post","status-publish","format-standard","hentry","category-uncategorized","entry"],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/posts\/141164","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/comments?post=141164"}],"version-history":[{"count":0,"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/posts\/141164\/revisions"}],"wp:attachment":[{"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/media?parent=141164"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/categories?post=141164"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/tags?post=141164"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}