Fuel Hike Hits the Table: Sh40 Fuel Shock Pushes Up Food Prices & Daily Costs

By Kepher Otieno - Reporter

Kenya, April 15, 2026 - Barely hours after fuel prices shot up, the impact is already spilling beyond the transport sector and landing squarely on the dining table.

In its latest review, the energy regulator raised the cost of diesel by Sh40 to 206 a litre, while petrol rose by 28 shillings to a similar level.

According to the Energy and Regulatory Authority, this reflected higher global oil and shipping costs, even as the government cut value added tax to 13 from 16 percent.

The new prices will last until 14 May when the next review is due.

Paradoxically, what began with panic buying and hoarding at petrol stations—like the scenes witnessed in Kisumu—has now triggered a chain reaction that is quietly but steadily and slowly pushing up the cost of food and essential goods across the country.

In major super and open air markets, traders are already adjusting prices. The explanation is simple and blunt: transport costs have surged overnight.

“We paid more to bring in the vegetables this morning,” said a trader Mary Atieno at Kibuye Market in Kisumu. But its not Kisumu alone. It’s the recurring story now all over the country.

Traders and consumers reached on phone in Nairobi, Nakuru and Eldoret expressed similar predicament.

“That cost has to be recovered.” The result is that staples—kales, tomatoes, onions—are inching upward, sometimes within hours of arrival. This includes liquified petroleum gas.

Evelyne Otieno, disclosed she refilled a 6kg gas cylinder yesterday at Sh1500 up from the initial cost of Sh1350.

The pressure is even more intense along key supply routes. Most of the food consumed in urban centres travels hundreds of kilometres by diesel-powered trucks.

They are shipped from Eldoret to Nairobi, from Kisumu to Nairobi, from Central to Kisumu, Kisii to Kisumu and from Nakuru to Kisumu to counties vice versa sharing different goods.

With diesel prices jumping by over Sh40 per litre, transporters have wasted no time revising their charges.

A lorry driver ferrying produce from Eldoret to Nairobi put it plainly: “Fuel is everything. If it goes up like this, the price of food must follow.” Claimed trader John Kimutai.

In Eldoret, a critical agricultural hub, farmers and transporters are already feeling the squeeze.

The cost of moving maize, milk and vegetables to markets in Nairobi, Nakuru and beyond has risen sharply, forcing middlemen to either absorb losses or pass them on.

Most are choosing the latter. “We cannot operate at a loss,” said a produce supplier Victor Mutai. “The buyer will pay more, and the consumer will pay even more.”

In Kisumu and the wider lake region, the effects are hitting both land and water supply chains.

Fish traders in Homa Bay and Migori, who depend on fuel for both transport and preservation, are facing a double burden.

“Boat fuel is up, transport is up—everything is up,” Alice Awino, a fish trader said.

“We have no option but to increase prices.” The end result is that fish, a dietary staple in the region, is becoming more expensive for ordinary households.

Markets in Kakamega are seeing similar trends. Traders report higher costs for bringing in goods from farms and neighbouring counties.

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Even short-distance transport—once relatively cheap—is now significantly more expensive as matatus and boda bodas adjust fares upward.

For small-scale vendors, this means reduced margins and slower business, as customers begin to cut back.

In Kisumu and Nakuru, key transit towns, the price shock is acting like a relay point for inflation.

Goods passing through the town—from western Kenya to Nairobi and vice versa—are accumulating higher transport costs at every stage.

By the time they reach consumers, prices have climbed noticeably. But this is not a global situation and not expressly to blame on the government.

Government officials acknowledge the strain but insist the increases were unavoidable.

Energy Cabinet Secretary Opiyo Wandayi has pointed to global oil market disruptions and rising import costs, noting that interventions such as a VAT reduction and subsidies were meant to cushion Kenyans from even steeper increases.

Meanwhile, the Energy and Petroleum Regulatory Authority maintains that the new pricing reflects actual landed costs of fuel, particularly diesel, which underpins transport and food distribution.

But on the ground, the reality is stark and immediate. Consumers are already taking advantage of the fuel hikes and are adjusting their buying habits—purchasing less, switching to cheaper alternatives, or skipping items altogether.

“You come with Sh500 and leave with half of what you used to buy,” a shopper in Kisumu Jubilee market said. “It’s getting harder every day.”

The fuel hike has effectively redrawn the economics of daily life. Transport costs feed directly into food prices, and food prices define the cost of living.

What Kenya is witnessing now is the early stage of a broader inflationary wave—one that begins at the pump, moves through the transport network, and settles heavily on the plates of ordinary citizens.

Analysts and observers say the state will still have to do a lot to cushion Kenyans from the possible effects of likely increase in inflationary pressures as the crisis looms as price rises come amid the global fuel crisis caused by the US-Israel war with Iran that began on 28 February.

Concerns remain that the energy crisis may deepen despite a conditional two-week ceasefire signed last Wednesday that included opening the Strait of Hormuz, a key shipping route for global oil and gas supplies.

Shipments through the strait have largely been at a standstill since the war began.

Countries have taken various measures to cope with the crisis and cushion consumers from the price shocks, including cutting taxes and minimizing wastage.

Kenya's directive to cut VAT on fuel is scheduled to last until July. Already countries such as South Africa announced a one-month cut in the fuel levy two weeks ago to limit pump prices.

Other African countries to have announced similar measures include Zambia, Namibia and Ghana.

Ironically, South Sudan announced electricity rationing and Ethiopia prioritized certain sectors to deal with the crisis witnessed to cushion them from the cascading global oil crisis.