How fuel price surge is set to hit cost of basic goods, transport and key services
By Aloys Michael, April 15, 2026Kenyans are set to dig deeper into their pockets for basic goods and services following a sharp increase in fuel prices, a move expected to ripple across the economy and push inflation higher in the coming months.
The Energy and Petroleum Regulatory Authority (EPRA) announced that new fuel prices will take effect from April 15 to May 14, 2026. In the latest review, the price of Super Petrol has increased by Ksh28.69 per litre, while Diesel has risen even more steeply by Ksh40.30 per litre.
This marks one of the most significant hikes in recent months and is likely to affect transport, food distribution, and production costs.
Fuel is a key driver of economic activity in Kenya, and any increase typically translates into higher prices for everyday goods.
With transport costs forming a major component of supply chains, businesses are expected to pass on the additional costs to consumers, meaning that essentials such as food, household goods, and even services could soon become more expensive.
Food items price change
The latest inflation data already points to mounting pressure on household budgets. Kenya’s annual inflation stood at 4.4 per cent in March 2026, according to the Kenya National Bureau of Statistics (KNBS).
This reflects a steady rise in the general price level compared to March 2025. Every month, inflation increased by 0.5 per cent, with the Consumer Price Index (CPI) rising from 149.20 in February to 150.00 in March 2026.
Food prices remain the biggest contributor to inflation. Over the past year, the cost of food and non-alcoholic beverages rose by 7.7 per cent, significantly outpacing other categories. Transport costs increased by 3.8 per cent, while housing, water, electricity, gas and other fuels went up by 2.0 per cent.
Together, these categories account for more than 57 per cent of the CPI basket, making them critical indicators of the cost of living.
“The price increase was primarily driven by a rise in prices of items in the Food and Non-Alcoholic Beverages (7.7 per cent), Transport (3.8 per cent), and Housing, Water, Electricity, Gas and other fuels (2.0 per cent),” the KNBS report stated.
Recent data shows mixed trends in food prices. Between February and March 2026, tomatoes surged by 13.3 per cent, while beef with bones rose by 1.8 per cent.
However, some relief was seen in staples such as maize grain, which dropped by 2.4 per cent, and cabbage, which declined by 3.8 per cent. Despite these short-term declines, the annual trend remains upward, with vegetables like tomatoes and sukuma wiki recording double-digit increases.
Brace for high living costs?
The looming fuel price hike threatens to reverse any temporary relief consumers have experienced.
Higher diesel costs, in particular, are expected to significantly impact the cost of transporting goods, especially agricultural produce from rural areas to urban markets. This could further accelerate food inflation, which already carries the heaviest weight in the CPI at nearly 33 per cent.
Already, the Transporters Association of Kenya has announced plans to increase charges by 14 per cent due to the sharp fuel increase, a move that could have a ripple effect on the cost of basic goods and other essential services.
Global factors are also compounding the situation. The World Bank has warned that escalating geopolitical tensions, particularly the ongoing conflict involving Iran, could drive up inflation and slow economic growth across African economies. Oil-importing countries like Kenya are especially vulnerable to such shocks.
“The burden will fall most heavily on the world’s most vulnerable populations, particularly in low-income, import-dependent economies. Spikes in fuel prices and potential sharp increases in food prices are especially concerning where fiscal space is constrained, and debt burdens are already high, reducing governments’ ability to protect vulnerable households,” the World Bank said in a statement on April 8, 2026.
The global oil market has already experienced significant volatility. Brent crude prices surged by as much as 55 per cent following geopolitical tensions, and although prices have eased slightly, they remain well above pre-conflict levels. This sustained elevation continues to exert pressure on domestic fuel prices in Kenya.
Beyond fuel, rising fertiliser costs are also adding strain to the agricultural sector. As farmers grapple with higher input costs, the impact is likely to be felt in food prices in the coming months, further tightening household budgets.
Economists warn that the combined effect of rising fuel prices, persistent food inflation, and global economic uncertainty could deepen financial strain for many Kenyans.
Projections indicate that inflation could rise further above 4 per cent, potentially reducing household incomes by up to 2.6 per cent. In a worst-case scenario, nearly one million more people could fall below the poverty line.
For now, households are left to navigate a tightening economic environment, with little immediate relief in sight. As fuel prices rise and inflationary pressures build, the cost of basic living in Kenya appears set to climb even higher.