Former LSK President Faith Odhiambo has weighed in on the latest fuel price review by the Energy and Petroleum Regulatory Authority EPRA Kenya,
EPRA’s pricing cycle for the period 15th May to 14th June 2026 shows a steep upward adjustment, with Super Petrol increasing by Ksh 16.65 per litre and Diesel rising by Ksh 46.29 per litre.
EPRA attributes the surge to a 20.32% jump in the landed cost of diesel, which moved from US dollar 1,073.82 to US dollar 1,291.98 per cubic metre. The adjustment has triggered renewed debate on the effectiveness of government interventions meant to stabilize fuel prices.
Government Cushioning Measures Under Scrutiny
Odhiambo noted that while the government has deployed Ksh 5 billion from the Petroleum Development Levy Fund to cushion diesel and kerosene prices, the intervention appears insufficient to offset global and structural cost pressures.
She emphasized that the fund is not external support but public money accumulated from levies already paid by consumers at the pump, raising accountability concerns over its deployment and adequacy.
Faith Odhiambo further pointed to the reduction of VAT on petroleum products from 16% to 8%, introduced under Legal Notice No. 70 of 15th April 2026, arguing that the tax relief should have delivered a more noticeable easing effect on retail prices.
Instead, she observed that consumers are facing back-to-back price increases, effectively neutralizing the intended relief measures.
Calls for Transparency and Public Accountability
“Kenyans have a right under Article 35 of the Constitution to interrogate every line of this document. The PDL Fund is public money. Its deployment must be transparent and accountable,” she said.
Odhiambo called for stronger oversight and clearer disclosure on how cushioning mechanisms are calculated and distributed.
As fuel prices continue to rise, pressure is mounting on policymakers to balance global market volatility with domestic affordability.
Odhiambo’s remarks add to growing public scrutiny of Kenya’s energy pricing framework, with stakeholders demanding more sustainable and transparent long-term solutions.
