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The Kenya National Chamber of Commerce and Industry (KNCCI) has raised concerns over the continued high cost of fuel, warning that it is putting heavy pressure on the transport sector and could trigger wider economic instability if no urgent interventions are made.
In a statement, the chamber said elevated pump prices—despite recent tax reductions—are still increasing business operating costs, risking job losses, higher consumer prices, and reduced competitiveness.
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The warning follows recent fuel price changes by the Energy and Petroleum Regulatory Authority (EPRA), which had initially raised prices due to global oil market pressures before a government VAT cut led to a partial decrease.
KNCCI CEO KK Mutai said businesses are struggling to cope with the sustained high fuel costs, noting that the economy cannot withstand further shocks without serious consequences for employment and price stability.
Despite the slight reduction, fuel prices remain high compared to previous months due to ongoing global supply disruptions linked to geopolitical tensions in the Middle East.
The chamber reported that transport fares have increased by up to 25%, while logistics costs continue to rise because fuel remains a major input in the sector.
It also noted that production costs in manufacturing and agriculture have gone up by between 15% and 30%, raising concerns about inflation and business sustainability.
KNCCI further highlighted Kenya’s heavy reliance on imported petroleum, which makes the economy vulnerable to global shocks, especially disruptions along key shipping routes such as the Strait of Hormuz.
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In addition, it pointed out that taxes and levies make up nearly 45% of fuel prices locally, significantly contributing to the high cost burden.
The chamber is now urging a review of fuel taxes and levies, as well as targeted support for transport operators, small enterprises, and export-driven industries.
It warned that without coordinated action, sustained high fuel prices could push up food costs, weaken export performance, and slow down overall economic growth.
