Motorists Association Kenya: Challenges EPRA Fuel Prices Transparency

• Matatu operators have raised fares immediately following EPRA's latest fuel price adjustments.
• EPRA increased Super Petrol by Sh12.93, diesel by Sh9.90, and kerosene by Sh28.49, with new rates effective October 15 to November 14, 2026.
• The Motorists Association of Kenya (MAK) has challenged EPRA's pricing calculations, citing disproportionate retail price increases compared to landed costs.
• MAK demands a detailed price breakdown and an independent audit of the Government-to-Government fuel import arrangement.
• EPRA attributes the price hikes to increased landed costs of imported refined petroleum products, with Super Petrol's average landed cost rising from US$874.26 to US$977.55.

The Motorists Association of Kenya (MAK) has vocally criticized EPRA's methodology for setting fuel prices, demanding enhanced transparency in how pump prices are determined.

Matatu operators across Kenya have initiated immediate fare increases, directly responding to the latest surge in fuel prices. This move by the public transport sector signals an impending rise in commuting costs for citizens nationwide. Albert Karakacha, who leads the matatu owners' association, confirmed that operators would implement higher fares to offset the impact of the Energy and Petroleum Regulatory Authority's (EPRA) recent price adjustments, emphasizing the significant financial strain placed on their operations by escalating fuel expenses.

Karakacha indicated that these additional operational costs would inevitably be transferred to passengers. He also made a public appeal to President William Ruto, urging him to uphold a previous commitment to maintain low diesel prices, a critical factor for the public transport industry. These fare hikes follow EPRA's announcement of new rates, effective from October 15 until November 14, 2026, which saw Super Petrol increase by Sh12.93 per litre, diesel by Sh9.90, and kerosene by Sh28.49. The rise in diesel prices is particularly impactful for the public transport sector, which heavily relies on this fuel.

The Motorists Association of Kenya (MAK) has vocally criticized EPRA's methodology for setting fuel prices, demanding enhanced transparency in how pump prices are determined. In a statement released on October 15, MAK asserted that the increases in retail prices did not align proportionally with the reported changes in the landed costs of imported petroleum products. This discrepancy forms the core of the association's challenge to the regulatory body.

MAK highlighted specific disparities: while the landed cost of Super Petrol increased by 11.81%, its retail price rose by only 6.04%. Similarly, diesel's landed cost went up by 11.32%, but its retail price saw a smaller 4.54% increase. Conversely, kerosene's landed cost increased by 9.41%, yet its retail price jumped by a disproportionately higher 14.89%. Although acknowledging that factors such as taxes, levies, transportation, and stabilization adjustments influence retail prices, MAK has called for EPRA to release a comprehensive breakdown detailing the calculation of these latest prices. The association also questioned EPRA's justification for the kerosene price hike, which cited an aim to reduce the price gap with automotive fuels to deter adulteration.

Beyond questioning the current pricing structure, the Motorists Association of Kenya has intensified its demands by calling for an independent audit of the Government-to-Government (G-to-G) fuel import arrangement. This audit aims to ascertain whether this procurement method genuinely offers cost savings compared to traditional competitive procurement processes. MAK has issued a stern warning, indicating its readiness to mobilize various stakeholders, including motorists, transport operators, traders, and commuters, for peaceful demonstrations if the government fails to adequately address their concerns regarding fuel pricing and transparency.

EPRA, for its part, has attributed the recent price adjustments to fluctuations in the cost of imported refined petroleum products, which Kenya procures from international markets based on established pricing benchmarks. The authority noted that the average landed cost of imported Super Petrol increased from US$874.26 per cubic meter in August to US$977.55 in September 2026. This ongoing dispute over fuel pricing carries significant implications, as households and businesses across Kenya face the prospect of elevated transport and operational costs, potentially impacting consumer pricing strategies and overall economic stability.

Lawyers and compliance officers should monitor the Motorists Association of Kenya's demands for an independent audit and increased transparency regarding EPRA's fuel price calculations, as this signals potential regulatory challenges and could impact transport sector operational costs and consumer pricing strategies.

Source: Reporting based on local Kenyan news sources.