By Kepher Otieno - Reporter
Kenya, 19 May 2026 - Kenya is staring at the prospect of a deepening economic crisis driven by runaway fuel prices, presidential candidate Eliud Owalo has warned, in one of the sharpest attacks yet on the government’s economic management.
In a strongly-worded national statement, Mr Owalo painted a picture of a country buckling under the weight of soaring energy costs, collapsing consumer confidence and mounting public frustration. He described the latest fuel prices as “the last straw that breaks the camel’s back” for millions of struggling households.
“Kenya is bleeding at the pump and the economy is rapidly haemorrhaging,” Mr Owalo declared. “We are weakening the very lifeline of our economy, and decisive action must now be taken.”
The intervention comes after diesel prices in Nairobi surged above KSh 230 per litre, maintaining Kenya’s position as the most expensive fuel market in East Africa. Petrol prices also remain significantly above regional and global averages.
Mr Owalo questioned how landlocked Uganda could maintain cheaper diesel prices despite relying heavily on Kenyan transport infrastructure. He also pointed to Tanzania, Rwanda, Ghana and Ethiopia, all of which currently record lower fuel costs.
“How can landlocked Uganda have cheaper diesel than Kenya when most of its fuel passes through Kenya?” he asked.
“How can Tanzania and Ghana maintain significantly lower fuel prices than Kenya? The truth is simple. Kenyan fuel prices are no longer being driven purely by global oil prices. They are being driven by over-taxation, failed policy choices, non-competitive fuel import arrangements and misplaced government priorities.”
His statement blended economic analysis with political messaging.
Mr Owalo argued that Kenya had become both a regional and global outlier in fuel pricing, exposing citizens and businesses to what he termed “one of the harshest fuel cost burdens anywhere in the world”.
According to his analysis, more than KSh 80 in every litre sold at the pump consists of taxes, levies and regulatory charges. He accused the government of overburdening citizens through excessive taxation at a time of rising inflation and declining purchasing power.
“When fuel prices spiral out of control, food prices surge, transport costs skyrocket, production slows, businesses shut down, jobs disappear and millions of households are pushed deeper into poverty,” he said.
“The mama mboga now pays more to transport vegetables to the market. Farmers spend more on irrigation and machinery. Workers increasingly struggle simply to afford fare to work.”
In perhaps the most politically charged section of his address, Mr Owalo warned that the economic distress could evolve into a broader national security concern if left unresolved.
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“When citizens can no longer afford to grow food, travel to work or transport children to school, the consequences extend far beyond the economy,” he said.
“At that point, the country risks sliding into a full-blown national security crisis driven by economic distress, social frustration and public desperation.”
His remarks appear carefully calibrated to tap into growing anger over the cost of living. Fuel prices remain one of the most politically sensitive issues in Kenya because they ripple rapidly across the economy, influencing transport fares, food prices, industrial production and household spending.
Mr Owalo reserved particular criticism for the government-to-government oil import arrangement, arguing that it had failed to deliver meaningful price relief while raising concerns about transparency and competitiveness.
“The G2G arrangement was introduced to stabilise supply and lower prices,” he said.
“It has failed to deliver meaningful relief to consumers. Serious concerns have emerged over reduced market competitiveness and inefficiencies within the framework.”
He proposed sweeping interventions, including reducing or scrapping VAT on fuel, reviewing fuel levies, capping oil marketing company margins during crises, creating strategic petroleum reserves and investing in local refining capacity.
Yet economists note that the government faces a difficult balancing act. Fuel taxes remain a major source of state revenue in an economy already burdened by debt obligations and fiscal pressure. Reducing those taxes could ease consumer pain but widen budget deficits.
Even so, Mr Owalo’s statement signals the shape of the political debate now emerging ahead of the 2027 election cycle.
Economic hardship, taxation and household survival are increasingly replacing traditional political loyalties as the defining battleground of Kenyan politics.
And few issues capture that anxiety more vividly than the rising price of fuel.