Kenya witnessed a historic surge in fuel prices as the Energy and Petroleum Regulatory Authority revised pump rates, exacerbating the economic challenges faced by its populace.

The announcement of these new rates, which have propelled the price of a liter of petrol to an unprecedented over 200 Kenyan shillings ($1.36), comes at a time when Kenyans are grappling with a harsh cost of living crisis. This crisis is characterized by soaring prices of essential goods, the imposition of numerous new taxes, and a devaluing currency.

Throughout the year, opposition protests against President William Ruto’s government and its economic policies have erupted, with some escalating into deadly violence.

Under the latest pricing structure in effect until October 14, the cost of a liter of petrol in the capital city of Nairobi has surged by nearly 17 shillings to 211.64 shillings ($1.44), while diesel prices have reached 200.99 shillings.

In response to this increase, fares for matatus, the minibuses widely used for transportation in Kenya, are also expected to rise. The Matatu Owners Association has declared a 20 percent fare increase nationwide, according to media reports.

Government officials partially attribute this fuel price spike to the recent reduction in oil production by major producers Saudi Arabia and Russia, which has led to a sharp increase in global crude oil prices, reaching their highest levels in ten months.

Energy Minister Davis Chirchir acknowledged the heavy burden on citizens, stating, “There’s not much we can do… the pain is certainly substantial, and it won’t be easy.”

Trade and Industry Minister Moses Kuria issued a warning via social media platform X (formerly Twitter), indicating that Kenyans should expect monthly fuel price hikes of 10 shillings until February.

https://x.com/HonMoses_Kuria/status/1702970749592428952?s=20

Fuel prices have been steadily rising following the removal of subsidies, as per the International Monetary Fund’s recommendations, and the doubling of Value Added Tax (VAT) on fuel products through an unpopular Finance Act signed into law by President Ruto in June.

This legislation introduced several new and increased taxes, which the government argues are necessary to improve public finances and alleviate the national debt burden. A Nairobi court is slated to rule on the constitutionality of the Finance Act in November, following a legal challenge by various petitioners.

Media reports suggest that the government is contemplating further tax increases, including raising VAT and imposing duties on farmers and vehicle owners, as outlined in a Treasury strategy review extending until 2026/27.

Many Kenyan citizens have accused President Ruto of reneging on promises made during his election campaign last year, in which he pledged to improve the welfare of ordinary people.

In a statement marking Ruto’s first year in office this month, the opposition Azimio La Umoja Coalition characterized his tenure as a “grand disaster.” The coalition, led by veteran opposition figure Raila Odinga, who lost to Ruto in the previous year’s election, pointed out that “life is deteriorating, not improving” for Kenyan citizens.

Although Kenya’s inflation rate dropped to 6.7 percent in August, the past year witnessed a 22 percent increase in petrol prices, a nearly 50 percent rise in electricity costs, and a substantial surge in the prices of household staples such as sugar (61 percent increase) and beans (30 percent increase).