Bus companies begin fare hikes after sharp increase in fuel prices

Travellers across the country are now staring at elevate prices of goods and services following a sharp increase in pump prices announced on Tuesday.

Despite the move by the National Treasury to reduce Value Added Tax on fuel from 16pc to 13pc for the next one month to cushion consumers from elevated prices,  the Energy and Petroleum Regulatory Authority (EPRA) announced increase in pump prices where a litre of super petrol and diesel has risen by Ksh 28.69 and Ksh 40.30 respectively, while kerosene remained unchanged.

On Wednesday, various bus companies were reported to have reviewed upwards their fare charges which have been triggered by the fuel increase currently in effect until May 14, 2026.

ENA Coach which operates a fleet of buses from Nairobi to various parts of the country published its revised fares which will now see Kenyans paying more to travel.

In a public notice, the bus company announced up to Ksh 500 increase in bus fares to various destinations across the country owing to pump price changes.

“Following the recent fuel price review announced by EPRA, we have undertaken careful operational assessment and implemented a necessary adjustment to our fare structure to sustain service quality across all routes,” said the firm in a statement.

The increase in prices has been triggered by the ongoing war between the United States and Israel against Iran affecting oil supply through the Strait of Hormuz.

Kenya which sources its petroleum products from Gulf countries under the Government-to-Government agreement since 2023 experienced significant rise in prices of imported fuel.

The price of imported super petrol rose by 41.53pc, diesel by 68.72pc and kerosene by 105.15pc last month despite authorities assuring the country of sufficient stock.

According to EPRA, Ksh 6.2 billion from the Petroleum Development Levy Fund has also been utilize to stabilize prices.

However, the Central Bank of Kenya (CBK) already warned that if the shocks on global energy prices persist as a result of the ongoing conflict, inflation could peak to 6.2pc by July this year from 4.4pc recorded last month.

“Higher energy prices is expected to affect negatively the performance of key sectors such as manufacturing, transport and storage, accommodation and food services and well as wholesale and retail trade sectors. The disruption is also expected to affect the exports and imports of our goods and services,” said Dr Kamau Thugge, CBK Governor.

At Ksh 229.15 per litre of super petrol, Ksh 229.02 and Ksh 174.96 for a litre of diesel and kerosene respectively, Mandera residents are now paying the highest amount at the pump after the review by the petroleum regulator.

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