- The Kenya Transport Operators Association (KTA) has issued a new notice to its members after EPRA reviewed fuel prices
- KTA noted that fuel is the biggest cost in road freight, accounting for more than 55% of all operating costs.
- According to the association, Kenyans who transport goods across the country will bear the brunt of the increase in diesel prices imposed by the energy regulator.
The Association of Public Transport Operators (KTA) has issued a statement to its members following a significant increase in fuel prices.
Source: Twitter
According to the chairman of KTA, Newton Wangoo, fuel accounts for more than 55% of all operating costs, thus being the biggest cost factor in the transportation of goods by road.
KTA reported in a statement on Tuesday, April 14, that the price of diesel has increased by 24.5%, a situation that will increase operating costs and affect transportation prices.
“Increase in transportation costs (%) = increase in fuel prices (%) × fuel cost share (%) 24.5% × 55% = 13.5% (approximately), meaning an increase of about 13 to 14% in the total costs of transportation operations,” he said.
What was the mandate of the KTA to its members?
According to the association, Kenyans who transport goods across the country will have to bear the cost of the increase in the price of diesel set by the Energy and Petroleum Regulatory Authority (EPRA).
Therefore, KTA directed its members to review the transportation and freight rates to match the increase in fuel prices.
“Members are advised that such a large increase in input costs cannot be sustained for a long time. Therefore, it is necessary for all members to immediately review their cost structures and adjust the shipping rates to reflect the new cost situation,” the notice published on X said.
Source: Twitter
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Wangoo urged KTA members to maintain transparency and continuity of service by communicating with their customers and contract partners quickly, clearly explaining the reasons for the change.
How did EPRA review fuel prices?
Due to the price increase of KSh 28.69 and KSh 40.30 per liter for petrol and diesel respectively, Kenyans will have to pay more for fuel products for the next 30 days.
The energy regulator noted that although the price of kerosene has not changed, the prices of petrol and diesel have risen sharply due to increased input costs.
In Nairobi, super petrol will be sold at KSh 206.97, diesel at KSh 206.84 and kerosene at KSh 152.78 in the next month.
The Minister of Energy, Opiyo Wandayi, had previously predicted that oil prices would rise due to disruptions in the supply chain caused by the unrest in the Middle East.
What is the new Value Added Tax (VAT) on fuel?
According to the Energy and Petroleum Regulatory Authority, VAT was implemented in accordance with the VAT Law of 2013, read together with Legal Announcement No.
69 of April 14, 2026, Finance Law of 2023, Tax Laws Amendment Law of 2024, as well as excise tax rates adjusted for inflation under Legislative Proclamation No. 194 of the year 2020.
The organization noted that the actual rate of VAT on super gasoline, diesel and kerosene has been reduced from 16% to 13% to reduce the impact on consumers due to the increase in global oil prices.
The government said it has also strengthened the stability of oil prices by providing KSh 6.2 billion through the Petroleum Development Levy (PDL) Fund.
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