By Benadeta Mwaura - Reporter
Kenya, 20 May 2026 - Pressure is mounting on Parliament to urgently intervene in Kenya’s escalating fuel crisis as matatu operators, transport stakeholders and civil society groups intensify calls for sweeping tax reforms aimed at lowering pump prices and stabilizing the economy.
The growing demands come after days of nationwide transport disruptions triggered by sharp fuel price increases that paralysed movement across major towns and cities.
The crisis has now evolved beyond a transport dispute into a broader political and economic confrontation over Kenya’s fuel taxation model, with lawmakers increasingly finding themselves at the center of public anger over the rising cost of living.
Speaking during a television interview on Wednesday, Alexander Riithi, Head of Programmes at the Institute for Social Accountability (TISA), argued that Parliament bears direct responsibility for the current fuel burden because legislators approved the tax measures now pushing fuel prices higher.
“Nobody is happy when the transport is not working. We should find a balance between the representatives that we will have negotiating. When we leave it to the business people, they will only look at one side of the coin. We cannot solve this problem without Parliament being involved,” Riithi said.
Riithi insisted that the crisis should not solely be left at the doorstep of President William Ruto, arguing that MPs have the constitutional mandate to amend or repeal the fuel taxes and levies currently weighing heavily on households and businesses.
“In my view, these fuel problems should not be at the President’s doorstep. The people who should be pushing very hard are Parliament, because all these taxes are legislated by Parliament. If we are going to make any changes, it is not the president, it is the Parliament,” he added.
The renewed pressure comes after the Energy and Petroleum Regulatory Authority (EPRA) announced one of the sharpest fuel price increases in recent years.
Diesel prices surged by more than Sh46 per litre while super petrol rose by approximately KSH16, pushing pump prices in Nairobi to around KSH242.92 for diesel and KSH214.25 for petrol.
The increases triggered nationwide outrage, forcing matatu operators, truckers and sections of the transport industry into strike action that disrupted movement in Nairobi, Mombasa, Nakuru and several other towns.
Thousands of commuters were stranded as PSV operators withdrew vehicles from roads while others sharply increased fares to cushion themselves from rising fuel costs. Businesses, schools and manufacturers also suffered major disruptions as transport systems stalled.
The Association of Matatu Transport Owners (MOA) and other transport sector stakeholders are now pushing for Parliament to urgently reconvene from recess and process amendments aimed at reducing fuel taxation.
Among the key proposals being pushed is the zero-rating of Value Added Tax (VAT) on fuel, reduction of the Road Maintenance Levy and broader reforms targeting multiple petroleum-related taxes and levies that currently account for a significant portion of pump prices.
Kiharu MP Ndindi Nyoro has emerged as one of the strongest voices backing urgent parliamentary intervention.
In a statement shared on his X account shortly after the fuel price review, Nyoro revealed that he had formally requested the Speaker of the National Assembly to recall Parliament from recess to process proposed amendments aimed at lowering fuel prices.
“Following our proposal to amend various laws with the aim of reducing fuel prices, we have written to the Speaker of the National Assembly with a request to recall the House from recess at the earliest, preferably Monday, to process the various proposed amendments,” Nyoro stated.
According to Nyoro, the proposed reforms would help cushion households, businesses and transport operators already struggling with inflation and rising operational costs.
Calls for VAT removal have also received backing from political leaders and public figures across the country.
Former Chief Justice David Maraga weighed into the debate earlier this week, calling for all fuel products to be exempted from VAT while also urging temporary suspension of fuel levies to stabilize prices.
“I wish to express my solidarity with Kenyans who have to bear the burden of bad governance that has led to the paralysis of the transport sector today,” Maraga said.
“While we acknowledge that the fuel crisis is a direct result of the war against Iran, every responsible government is taking steps to cushion their citizens from the high cost of living,” he added.
More from Kenya
Maraga further urged Parliament to urgently reconvene and re-evaluate fuel taxation policies.
“As a first step, Parliament should convene immediately to exempt all fuel products from VAT, temporarily remove all fuel levies to stabilise the fuel prices,” he stated.
Vihiga Senator Godfrey Osotsi has similarly called for VAT on fuel to be reduced to zero percent, warning that ordinary Kenyans are already overwhelmed by rising living costs.
“We also want the road maintenance levy to be reduced. We should not place an even heavier burden on our people. Taxes have already gone up, the cost of everything has increased, and now we are again increasing fuel prices for them,” Osotsi said.
The fuel debate is now exposing widening political divisions over Kenya’s taxation model and economic management.
Critics argue that Kenya’s fuel prices are no longer being driven solely by global oil markets but increasingly by domestic taxation. Currently, taxes and levies form a substantial component of the final retail fuel price, including VAT, Road Maintenance Levy, Petroleum Development Levy, Railway Development Levy and other charges.
Transport stakeholders argue that without structural tax reforms, any temporary fuel subsidy or price stabilization efforts will remain unsustainable.
Following negotiations with government officials, matatu operators agreed to suspend their nationwide strike for one week to allow further talks. However, transport leaders warned that protests could quickly resume if no meaningful agreement is reached.
Interior Cabinet Secretary Kipchumba Murkomen confirmed that the suspension was meant to create room for negotiations between government and stakeholders.
“Following consultations, it was agreed there was a need for negotiations at a high level within one week between now and May 26 and the strike is suspended to allow for negotiations,” Murkomen said.
Still, sections of the matatu industry remain skeptical.
Paul Thiong’o, Chairman of Forward Travellers, said operators were closely watching whether the government and Parliament would deliver concrete action.
“We have had very lengthy discussions with the Interior ministry, Transport ministry and other stakeholders, including the Governor of Nairobi, where we were trying to present our issues on fuel taxation and reduction of pump prices,” Thiong’o stated.
“We trust him that the president will do something when he comes back,” he added while referring to Nairobi Governor Johnson Sakaja, who participated in the negotiations.
The broader economic implications of the crisis are becoming increasingly visible.
Manufacturers have warned of interrupted production schedules and supply chain disruptions. Schools were forced to suspend transport services during the strike, while many companies advised employees to work from home due to fears of transport paralysis and insecurity.
The fuel crisis itself has largely been linked to global oil market instability following escalating tensions in the Middle East and disruptions around the Strait of Hormuz, one of the world’s most critical oil shipping routes. However, many Kenyans now argue that domestic taxation policies have amplified the impact locally.
As public frustration grows, Parliament is increasingly under pressure to decide whether it will defend existing fuel tax policies or move swiftly to reduce the burden before the crisis triggers deeper economic and political consequences.
Parliament Under Pressure as Matatu Sector Demands Urgent Fuel Tax Reforms
Kenya fuel crisis triggers fresh demands for parliament to reduce taxes
Discover more Kenya updates