President William Ruto Addresses Fuel Price Discrepancies
President William Ruto has addressed the ongoing comparisons between Kenya’s fuel prices and those of neighboring countries, emphasizing the reasons behind the differences. He highlighted that Kenya, as a middle-income country, experiences higher fuel costs compared to some of its neighbors, who are classified as least developed countries.
“Many people keep asking why prices in Kenya differ from those in our neighboring countries. It is important to clarify that Kenya is a middle-income country, while many of our neighbors are classified as least developed countries, and that creates a significant difference,” Ruto said during a church service at the AGC Karen in Nairobi.
He further explained that Kenya’s neighbors are considered less developed and do not operate on the same level as Kenya. “If you want to compare Kenya fairly with others, compare Kenya with other middle-income countries. That is when you will get the figures right,” he told the congregants.
Factors Contributing to Higher Fuel Prices
Ruto attributed the higher fuel prices to road maintenance levies, which form a significant portion of the final price. “Kenyans need to understand that we currently maintain over 20,000 kilometers of tarmac roads across the country and have another 6,000 kilometers under construction,” he stated.
The cost of fuel in Kenya includes nine different taxes and levies, some of which have increased, offsetting any benefits from other adjustments and price stabilization efforts. These taxes account for up to 40% of the final pump prices.
Breakdown of Taxes and Levies
- Railway Development Levy (RDL): Increased to Sh2.05 per liter of petrol from Sh1.43, Sh2.58 on diesel from Sh1.57, and Sh3.32 on kerosene from Sh1.59.
- Import Declaration Fee: Rose to Sh2.56 from Sh1.79 per liter of petrol, Sh3.22 on diesel from Sh1.97, and Sh4.15 on kerosene from Sh1.99.
- Excise Duty: Charged at Sh21.95 per liter of petrol and Sh11.37 on every liter of diesel and kerosene.
- Road Maintenance Levy: Set at Sh25 per liter of petrol and diesel, up from Sh18 during the 2024-25 financial year. Not applicable to kerosene.
- Petrol Regulatory Levy: At 75 cents per liter of each product.
- Anti-Adulteration: Charged at Sh18 per liter of kerosene.
- Merchant Shipping Levy: At Sh0.03 per liter of every petroleum product.
These taxes and levies significantly increase the landed costs of fuel products, which were at Sh107.23, Sh133.89, and Sh170.86 for the three products, respectively, with additional charges for storage and distribution.
Comparative Fuel Prices in Neighboring Countries
Fuel prices in Kenya remain higher than in key East African Community (EAC) member economies. For example:
- A liter of petrol in Nairobi is priced at Sh206.97, compared to Sh184.50 in Kampala, Uganda.
- Diesel in Kampala is cheaper by Sh29, retailing at Sh177.17, while in Nairobi it is also Sh177.17, even though Uganda’s fuel products are shipped through Kenya.
- In Dar es Salaam, Tanzania, a liter of petrol and diesel costs Sh190.19 and Sh189.49, respectively, compared to Mombasa, Kenya, where prices are slightly below Sh200.
The two port cities benefit from proximity to the sea, resulting in cheaper fuel prices compared to inland destinations where delivery costs add to the final pump prices.
Infrastructure Development and Economic Benefits
Ruto emphasized that the extensive road network in Kenya, which exceeds the combined tarmac road network of all EAC countries, is a result of deliberate investment. “The 20,000 kilometers of tarmac roads Kenya maintains exceed the combined tarmac road network of all the East African countries, including Uganda and Tanzania,” he noted.
The president defended his administration against accusations of overtaxation, stating that the fuel prices are not arbitrary but designed to support transport infrastructure that benefits the economy through improved connectivity, trade, and mobility.
In addition to the 6,000 kilometers under construction, an additional 28,000 kilometers will be built over the next seven years. “So, the thousands of kilometers we have in Kenya are more than all the countries in the EAC. The 6,000 kilometers is equivalent to all the tarmacs in a neighboring country, which has been built for 60 years. And we are setting the standards even higher, we want to have 28,000 kilometers in the next few years,” he declared.
