Threats to halt transport services due to rising fuel prices in Kenya

Written by: Ayman Ragab

Drivers in Kenya threatened to halt transport services on Main roads If an immediate cap on fuel prices is not set, they point out that the continued rise in fuel prices has made operations unsustainable and has severely damaged the livelihoods of workers in the transport sector.

The Kenya Motorists Association is pressing the government to take urgent action, including proposing to cap diesel prices at 140 Kenyan shillings and petrol at 150 Kenyan shillings per liter, stressing that price stability is the only way to restore predictability in the sector.

Increased transportation costs

According to the relevant authorities, the effects of this crisis have already begun to appear through the rise in transportation costs and the prices of basic commodities throughout the country.

The association put forward these demands following a high-level consultative meeting in Nairobi, which was later confirmed during an emergency session held yesterday, Monday, that brought together public transport bus operators (matatos), truck drivers, motorbike drivers (boda bodas), freight companies, and other transport workers under a unified position.

In its proposals, the group urges the government to stabilize Fuel prices Immediately, warning that continued price volatility, under the supervision of the Energy and Petroleum Regulatory Authority (EPRA), undermines planning, reduces profitability, and threatens business continuity.

stable pricing system

The relevant authorities confirm that a stable pricing system will not only protect transport companies, but will also contribute to reducing the cost of living by reducing transportation and food distribution expenses.

The association stressed that “fuel price stability is not a luxury, but rather the lifeblood of the economy,” linking fuel prices directly to inflation and household pressures.

They warned that inaction could lead to job losses, business closures, and potential protests in the sector.

In addition to setting a price ceiling, the drivers' association is demanding structural reforms in the management of fuel supplies, and wants the National Oil Corporation of Kenya (NOCK) to be the sole entity responsible for all intergovernmental fuel deals.

Key pricing authority

A joint statement read: “We propose that the Kenya National Petroleum Corporation be designated as the primary source for intergovernmental fuel deals.”.

They added: “This measure is necessary to protect members from artificial shortages, combat fuel fraud, and eliminate other forms of exploitation prevalent in the market.”.

It also calls for the immediate reinstatement of fuel subsidies, stressing that government support is essential to absorb the shocks caused by sudden price increases that have always negatively affected the sector.

At the same time, it calls for a comprehensive reform of pricing regulation, proposing to abolish the monthly fuel price reviews currently undertaken by the Energy Regulatory Authority and return to the previous Energy Regulatory Commission model, which they say was based on a more predictable, scientific formula.

Stakeholders also want to be directly involved in the pricing process, as was the case previously, to promote transparency and fairness in fuel pricing decisions.

Increased cost of tires, lubricants, and spare parts

They also pointed out that rising fuel prices have increased the cost of tires, lubricants and spare parts, putting additional pressure on companies that are already struggling with slim profit margins.

The group stated that “the current volatile fuel pricing system has inflicted heavy losses on the transportation sector, particularly on companies that rely on early price quotes for their services.”.

It also demands at least three months' advance notice before any future fuel price increases are implemented, stressing that sudden adjustments make it impossible for companies to plan or set sustainable transport fares.

The stakeholders formally requested an urgent meeting with the Minister of Energy and Petroleum, Obio Wandai, to present their grievances directly, insisting that all major transport associations strongly support this demand for immediate intervention.