On-the-Ground Updates

Kenyan Fuel Prices Increase as Fuel Subsidy Is Scrapped

Bulk Black Tea

Kenya

Supply Chain Management

Market & Price Trends

Willis Okoth

Published Sep 19, 2022

The cost of logistics in Kenya is expected to increase following the removal of the fuel subsidy as announced by EPRA (Energy and Petroleum Regulatory Authority). Fuel prices were raised from USD 1.32/L to USD 1.49/L for petrol and from USD 1.16/L to USD 1.37/L for diesel. This represents an increase of 13% and 18% for petrol and diesel respectively. This cost is expected to be passed on to producers and companies along the supply chain thereby increasing the cost of production of agricultural commodities. This is going to see prices increase for different products, including food. Logistics cost is projected to increase between 13-20%. From January to September petrol prices in Kenya have increased by 38% while diesel prices have increased by 49%.

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