Kenyan Government Triples Fuel Levy, Consumers Bear Brunt

Afaf Fahchouch
Afaf Fahchouch
2 Min Read

In a move likely to deepen the financial woes of Kenyan consumers, the government has implemented a significant increase in the tax imposed on fuel purchases. This latest hike sees the Petroleum Regulatory Levy tripled, jumping from Ksh0.25 to Ksh0.75 per litre, marking a substantial burden on the wallets of ordinary citizens.

The decision, announced by Energy Cabinet Secretary Davis Chirchir, comes as part of efforts to bolster the operations of the Energy and Petroleum Regulatory Authority (Epra). The levy hike, one among a plethora of taxes and levies levied on fuel, aims to shore up funding for the regulatory body amidst economic challenges.

While the increase in the levy might have gone largely unnoticed due to a nominal decrease in overall fuel prices, the ramifications are significant. For consumers, this translates to a sharper pinch at the pump, compounding the already elevated costs of fuel in the country.

Data from Epra reveals that Kenyans guzzled a staggering 4.649 billion litres of fuel in 2023, indicating a considerable revenue stream for the regulator. However, the burden of these levies falls squarely on the shoulders of consumers, who are grappling with the effects of escalating fuel prices and a general increase in the cost of living.

Furthermore, proposals put forth by the Kenya Roads Board (KRB) to hike the Road Maintenance Fuel Levy (RMFL) by Ksh5 per litre add to the strain on consumers. The justification for this increase lies in the mounting costs associated with road maintenance, exacerbated by the surge in fuel prices and the escalating expenses of construction materials.

Amidst these financial challenges, consumers face the grim reality of potentially facing further fuel price hikes if the proposals by KRB gain approval. With the cost of maintaining roads projected to skyrocket, the already burdened pockets of Kenyan consumers are set to endure even greater strain in the foreseeable future.


Share this Article
Leave a comment