Kenya’s Fuel Prices Set to Drop from Mid‑June
The Energy and Petroleum Regulatory Authority (EPRA) announced on Sunday, June 13 2026 that petrol and diesel prices will fall starting Monday, June 15. According to the regulator’s statement, petrol is expected to decrease by KSh 0.22 per litre, while diesel will drop by KSh 10 per litre. Jet fuel prices will remain unchanged for the upcoming pricing cycle.
How the Price Review Works
In Kenya, fuel prices are reviewed on the 14th of each month, with the new rates taking effect from the 15th through to the 14th of the following month. EPRA’s monthly review considers the average acquisition cost of imported petroleum products, applicable taxes, levies, and any government‑directed subsidies.
Current and Revised Pump Prices
Based on the latest EPRA data, the prevailing prices before the adjustment are:
- Nairobi: Petrol KSh 214.03/L, Diesel KSh 222.86/L, Kerosene KSh 191.38/L
- Mombasa: Petrol KSh 210.87/L, Diesel KSh 219.58/L, Kerosene KSh 188.09/L
- Nakuru: Petrol KSh 212.92/L, Diesel KSh 222.27/L, Kerosene KSh 190.81/L
- Eldoret: Petrol KSh 213.69/L, Diesel KSh 223.09/L, Kerosene KSh 191.63/L
After the June‑15 adjustment, petrol will fall to approximately KSh 213.81/L in Nairobi (and comparable reductions in other towns), while diesel will drop to roughly KSh 212.86/L in Nairobi.
Why the Prices Are Moving
EPRA attributed the petrol price cut to a 0.56 % decline in the average acquisition cost of imported premium gasoline, which fell from US$906.23 per cubic metre in April 2026 to US$901.16 per cubic metre in May 2026. Diesel acquisition costs rose slightly by 0.21 % (US$1,291.98 to US$1,294.71 per cubic metre), but the regulator offset this increase through a combination of tax relief and the Petroleum Development Levy (PDL) Fund.
Jet fuel prices experienced a modest 0.33 % decline (US$1,332.73 to US$1,328.36 per cubic metre), yet EPRA decided to keep jet fuel rates unchanged for this cycle.
Policy Measures Supporting the Cut
The price adjustments align with the Official Gazette notice issued in April 2026 that temporarily reduced Value Added Tax (VAT) on petroleum products from 16 % to 13 %, and subsequently to 8 %. EPRA clarified that the published pump prices already include VAT in accordance with:
- the Value Added Tax Act of 2013, as amended by Legal Notice No. 70 of April 15 2026;
- the Finance Law of 2023;
- the Tax Laws (Amendment) Act 2024;
- revised excise‑duty rates adjusted for inflation per Legal Notice No. 194 of 2020.
Additionally, EPRA said it will draw approximately KSh 10 billion from the Petroleum Development Levy Fund to subsidise diesel and kerosene prices during the June price cycle, cushioning consumers against any residual cost pressures.
Context and Outlook
In the previous month’s review (mid‑May), EPRA had set petrol at KSh 214.25/L, diesel at KSh 232.86/L, and kerosene at KSh 191.38/L. Following a petition from public‑transport operators worried about fuel adulteration due to the wide diesel‑kerosene price gap, the regulator revised those figures downward.
President William Ruto had earlier pledged a KSh 10 reduction in diesel prices. While changes to the pricing formula for imported fuel cargoes initially raised concerns that the promised cut might not materialise, the combination of lower acquisition costs, VAT relief, and PDL‑fund subsidies has enabled the regulator to deliver the anticipated diesel decrease.
Analysts note that the temporary VAT reduction and targeted levy use are designed to stabilise transport costs and support economic activity amid fluctuating global oil markets. Consumers can expect the new rates to remain in effect until the next monthly review on July 14, 2026, when EPRA will again assess acquisition costs, tax policies, and subsidy mechanisms.
