By Benadeta Mwaura - Reporter
Kenya, May 19, 2026 - Kenya’s manufacturing sector is raising alarm over growing disruptions caused by nationwide protests and transport paralysis linked to soaring fuel prices, warning that the crisis is now threatening production schedules, supply chains and overall economic activity.
In a statement issued on Monday evening, the Kenya Association of Manufacturers (KAM) said ongoing demonstrations and transport disruptions triggered by recent fuel price hikes had severely affected operations across the sector.
“For manufacturers, these disruptions result in interrupted operations, delayed production schedules, supply chain inefficiencies, and reduced productivity,” KAM said, warning that the situation was already affecting broader economic performance.
The industry lobby expressed concern over the latest fuel prices announced by the Energy and Petroleum Regulatory Authority (EPRA), which pushed pump prices to historic highs. According to KAM, super petrol rose to KSh214.25 per litre, diesel to KSh242.92 and kerosene to KSh152.78, levels the association described as unsustainable for businesses and households alike.
The protests and strike action by sections of the transport sector on Monday paralysed movement across major towns including Nairobi, Mombasa and Nakuru, leaving commuters stranded and businesses struggling to operate normally. Roads were blocked in some areas as matatu operators, truckers and boda boda riders protested against the rising cost of fuel.
Manufacturers now fear that if the disruptions continue, the country could experience shortages of raw materials, delayed deliveries and rising operational costs that may eventually be passed down to consumers through higher prices of goods.
The manufacturing sector is particularly vulnerable because many factories rely heavily on fuel-powered logistics systems to transport raw materials and finished products across the country and within the East African region. Increased fuel costs also directly raise electricity generation, transport and distribution expenses.
KAM’s warning comes as Kenya’s wider business community increasingly voices concern that the fuel crisis is beginning to spill beyond transport and directly into productivity, trade and industrial operations.
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The fuel crisis itself has been linked to global supply pressures caused by the ongoing Middle East conflict involving Iran, which disrupted global oil markets and affected key maritime shipping routes such as the Strait of Hormuz. Kenya, which imports most of its petroleum products from the Gulf region, has been among the African economies hardest hit by the price shocks.
Transport disruptions on Monday also forced some companies and organizations to ask employees to work from home amid fears of traffic paralysis, insecurity and limited public transport. Several schools were unable to operate transport services after drivers and conductors reportedly failed to reach schools on time due to the strike fears.
The broader economic implications are now becoming more visible.
Four people were killed and more than 30 injured during protests linked to the fuel hikes, while businesses across Nairobi suffered significant disruptions as transport systems stalled.
Industry players are now urging the government to urgently intervene before the situation escalates further.
The Petroleum Outlets Association of Kenya (POAK) has already warned that fuel prices could rise again in June as new procurement cycles begin reflecting the full impact of the Middle East conflict on global oil supply chains. “By June 14th, the price will go higher again. This time we have started feeling the heat of the actual war,” POAK Chair Martin Chomba said.
At the same time, business leaders warn that prolonged protests and transport paralysis could weaken investor confidence and slow economic recovery at a time when Kenyan households and businesses are already struggling with high living costs, rising taxes and shrinking disposable incomes.
For manufacturers, the concern now goes beyond fuel prices alone. The bigger fear is that prolonged instability in transport and logistics could disrupt the delicate supply networks that keep factories running and goods flowing across the economy.