Kiharu MP Ndindi Nyoro has warned that Kenya could face severe economic difficulties if the government fails to urgently address the sharp rise in fuel prices and the inflationary pressure expected to follow.
Nyoro’s warning came shortly after the Energy and Petroleum Regulatory Authority (EPRA) announced a major increase in fuel prices for the May 15 to June 14 pricing cycle. In Nairobi, the cost of Super Petrol rose to Ksh214.25 per litre, while Diesel climbed to Ksh242.92 per litre.
According to EPRA, the increase was driven by higher global fuel prices, the reinstatement of 8 per cent VAT on petroleum products, and inflation-adjusted excise duties.
Diesel recorded the steepest rise following a sharp increase in landed import costs between March and April.
Speaking in Nairobi on Friday, Nyoro said the latest price adjustments confirmed fears that rising fuel costs could destabilise Kenya’s economy if urgent interventions are not made.
He warned that the impact of the fuel hike could cost the country hundreds of billions of shillings through increased inflation, higher production costs and reduced economic activity.
Nyoro argued that the government should move quickly to lower fuel prices through targeted tax reliefs and subsidies instead of waiting to absorb the long-term economic consequences.
He proposed a three-point plan that includes removing the 8 per cent VAT on fuel products, reducing fuel distribution and retail margins by Ksh4, and scrapping the Ksh7 Road Maintenance Levy increase introduced in 2024.
According to him, the measures would immediately reduce fuel prices to below Ksh190 per litre, with Super Petrol dropping to about Ksh186 and Diesel to around Ksh189.
Nyoro also called for the release of Ksh5 billion from the Petroleum Development Levy Fund to cushion diesel prices, saying diesel remains a key driver of transport, agriculture and manufacturing.
He noted that rising diesel costs would inevitably push up the prices of goods and services across the economy, worsening the cost of living for ordinary Kenyans.
The former Budget Committee chairperson further revealed that he had written to the National Assembly seeking amendments to the VAT Act and Road Maintenance Levy framework to support the proposed fuel price reductions.
Nyoro challenged Members of Parliament to publicly state whether they support the proposals, arguing that Kenyans deserve transparency on where their leaders stand regarding fuel pricing reforms.
His remarks come amid growing concern over the rising cost of living, with fuel prices increasingly becoming one of the biggest contributors to inflation in Kenya’s import-dependent economy.
Meanwhile, the Law Society of Kenya (LSK) has also called on the government to introduce additional measures to cushion Kenyans from the latest fuel price increases.
In a statement issued on Friday, LSK President Charles Kanjama said the sharp increase in diesel prices would place additional pressure on households, public transport operators, small businesses and the wider economy.
Kanjama noted that diesel plays a critical role in transport, food production and commercial activity, meaning the inflationary effects of the latest adjustments would be felt across nearly all sectors.
While acknowledging the government’s Ksh5 billion subsidy from the Petroleum Development Levy Fund, the LSK said more intervention and greater transparency were still necessary.
The lawyers’ body also cited global instability and supply disruptions in the Persian Gulf as factors contributing to rising international fuel costs, but insisted that government action must remain guided by fairness, accountability and economic justice.
Former LSK President Faith Adhiambo also criticised the current intervention measures, saying the Ksh5 billion cushion was insufficient to protect consumers from the continued rise in fuel prices.
She questioned why fuel prices remained significantly high despite the reduction of VAT on petroleum products from 16 per cent to 8 per cent under Legal Notice No.70 of April 15, 2026.
Under the latest EPRA review, Super Petrol increased by Ksh16.65 per litre while Diesel rose sharply by Ksh46.29 per litre. Kerosene prices remained unchanged.
For the next 30 days, motorists in Nairobi will pay Ksh214.25 for Super Petrol, Ksh242.92 for Diesel and Ksh152.78 for Kerosene.
