COFEK calls for suspension of new petroleum levy over cost of living concerns
By Emmanuel Rono, March 25, 2026The Consumer Federation of Kenya (COFEK) has urged the immediate suspension of the Petroleum Development Levy (Amendment) Order, 2025, warning that the new levy will further escalate the already high cost of living in the country.
In a statement on Thursday, March 25, 2026, COFEK Secretary General Stephen Mutoro said that the levy, which was operationalised in November 2025, was introduced without adequate public participation or parliamentary oversight.
The federation condemned the new levy, which adds a significant financial burden to an already struggling populace. The order, signed by Energy and Petroleum Cabinet Secretary J. Opiyo Wandayi, increases the levy to Ksh5,400 per 1,000 litres on various fuels, including petrol, diesel, and jet fuel.
“This Order, signed by the Cabinet Secretary for Energy and Petroleum, J. Opiyo Wandayi, and made operative from 10th November 2025, represents yet another audacious assault on the pockets of ordinary Kenyans executed in the shadows of subsidiary legislation, far from the scrutiny of Parliament and the public,” COFEK noted.
Impacts of the levy
COFEK said that the levy, which has effectively increased the cost of petroleum products, threatens to cripple other vital sectors such as agriculture and manufacturing, which heavily rely on fuel.
“A financial burden of this magnitude touching every petroleum product that animates the Kenyan economy was imposed through a quiet gazette notice, without parliamentary debate, without public participation, and without stakeholder consultation,” Mutoro noted.
“This is a direct affront to Article 10 of the Constitution of Kenya, 2010, which binds all State organs to the national values of transparency, accountability, and public participation,” he added.
Replace current tax regime
The federation is now calling for a “top-to-bottom” audit of the petroleum sector to replace the current tax regime with a more humane, consumer-centric model.
Their demands are two-fold: absolute transparency on how fuel revenues are utilised and an end to the “irrational” taxation of LPG, which COFEK argues undermines Kenya’s transition to clean energy.
They insist that Parliament must reclaim its oversight role to stop the executive from bypassing the public on matters of national cost.
“Any future review of petroleum levies to be preceded by a mandatory 30-day public participation period, with written submissions from consumer bodies, industry associations, economists, and civil society,” COFEX noted.
“COFEK will be engaging legal counsel to evaluate the constitutional validity of this Order and is consulting with consumer advocacy networks across the East African region to coordinate a regional response,” the statement adds.