Fuel crisis sparks transport shutdown

FPTS CEO and RIG Owners Association chairman (C) Cornelius Chepsoi and Albert Karakacha (R), Matatu Owners Association chairman, during a press briefing in Nairobi, May 17, 2026. [Edward Kiplimo, Standard]

Transport across the country is set to grind to a halt after matatu operators, truckers, ride-hailing drivers and private vehicle owners announced a nationwide suspension of services, citing soaring fuel prices and a worsening economic climate.

In a joint statement, the operators, including Matatu Owners Association, Truckers Association and Rig Owners Association, said the cost of doing business has become unsustainable due to high fuel costs, heavy taxation and rising operational expenses.

They warned that no vehicles would be on the roads starting midnight until the government takes decisive action to lower fuel prices and review punitive levies.

This comes days after the Matatu Owners Association directed its members to increase fare prices by 50 per cent.

The Truckers Association of Kenya, led by its chairperson Raphael Lamuya, had also directed its members to increase transport charges by 30 per cent, citing the rising cost of fuel.

“We shall cease operations across Kenya until further notice due to the unbearable rise in fuel prices and economic conditions affecting transport operators and the common good. We can no longer sustain excessive fuel costs, heavy taxation and rising operational expenses,” said Rig Owners Association chairperson Cornelius Chepsoi.

The move came after the government, through the Energy and Petroleum Regulatory Authority (Epra), reviewed retail fuel prices that saw the price of diesel go up by Sh46.29 per litre, while super petrol went up by Sh16.65 per litre.

The unprecedented move by the transport stakeholders is expected to paralyse the movement of people and goods, with operators insisting they will not resume services until their grievances are addressed.

“We demand immediate government intervention through the reduction of fuel prices and review of all punitive taxes and levies. All operators, saccos, drivers and stakeholders are urged to remain peaceful, united and disciplined during the industrial action,” said Chepsoi.

They called for urgent government intervention, saying the current economic conditions are not only hurting transport players but also the broader public that depends on them.

“Until meaningful action is taken, transport operations shall remain suspended nationwide. There will be no movement in this country until this government listens,” he added.

Backing their position, the operators argued that the transport sector sustains the bulk of the economy.

“In two months, the prices have gone up by Sh73. No business can be done in this country… We will suspend the economy,” he added.

With the increased rates, prices of petrol and diesel in Nairobi are currently retailing at Sh214.25 and Sh242.92 respectively from May 15 to June 14, 2026.

They criticised what they termed misplaced priorities in fuel pricing, questioning why kerosene, which they claimed is closely linked to jet fuel, remains protected, warning that its pricing could encourage adulteration and damage modern vehicles.

“You cannot, for lack of wisdom or whatever it is, maintain the price of kerosene, mostly used by politicians because kerosene is jet fuel,” Chepsoi said.

“The economy is driven by diesel but EPRA decides to make sure jet fuel doesn’t increase and we cannot accept that. We must protect the industry, we must protect vehicles,” he added.

The stakeholders cautioned that many vehicles operating in the country, particularly newer Euro 5 and Euro 6 models, risk being rendered unusable if fuel quality is compromised, adding that operators would rather ground their vehicles than incur further losses.

“The government will know what to do but we are withdrawing all our vehicles starting midnight. We are not slaves, and we will not agree. It’s either they reduce taxes, or they utilise the Petroleum Development Levy, or they raise money from elsewhere, but fuel prices must come down,” Chepsoi said.

Economists, traders, commuters and industrialists expressed concerns that the nationwide strike by public transport operators and the 50 per cent fare hike will inevitably trigger a chain reaction across nearly every sector of the economy.

 With public transport being tied to Kenya’s daily economy and movement of goods, workers and services, economists, commuters and business owners have expressed concerns over the ripple effects of hiked costs for public transport.

Transport operators cited rising fuel prices as the main driver of the planned action, warning that current operating costs are unsustainable.

Should the strike take effect, major towns including Nairobi, Mombasa, Kisumu and Nakuru could experience significant disruption, with thousands of commuters left stranded.

Economists warned that the ripple effect is expected to affect the wider economy.  The informal sector, which depends on daily mobility, is particularly vulnerable to disruptions in transport. Essential services may also be affected, where schools could record lower attendance.

With Truckers joining the industrial action, delays in the movement of goods will be experienced, leading to shortages in some areas, further increasing the pressure on business owners and consumers to meet the demand and supply pressures.

Stephen Mutoro, the Secretary General and Chief Executive Officer of the Consumers Federation of Kenya (COFEK), said the ripple effects of the industrial action will be passed on to consumers, pushing up prices of essential commodities such as food and household items.

Mutoro noted that manufacturers are already feeling the pressure, with some scaling down production due to rising costs and unstable pricing, adding that frequent price changes are creating uncertainty in the market.

He warned that the situation could push some businesses out of the formal market altogether.

“Sometimes you can't price beyond a certain rate, because you actually drive yourself out of the market. Even certain manufacturers will find themselves having their goods not moving for reasons people can't afford,” he argued.

“And in that case, obviously people end up now in the black market, where quality is compromised and where government does not even get the same taxes it's looking for,” he added.

However, the consumer lobby SG criticised both the planned matatu strike and the proposed 50 per cent fare hike, terming the move contradictory.

Mutoro questioned the logic of transport operators, simultaneously calling for industrial action while increasing fares, adding that unjustifiable fare increments could place an additional burden on consumers already struggling with a high cost of living.

“The argument of increasing fares and striking at the same time is a bit contradictory because if they were striking without increasing the fares, that is a different thing. But the substantive issue is that the increment of far is unreasonable,” Mutoro argued.

Mutoro also expressed scepticism towards Matatu operators, accusing them of failing to lower fares even when fuel costs dropped.

“I don’t trust them because they increased last time when there was an increase in fuel prices and a reduction followed by a reduction. I remember when there was a bit of halving of the VAT, the matatu people never reduced,” he added.

However, he welcomed the pressure being exerted on the government t by transport operators, arguing that it could force action on fuel pricing concerns.

“The matatu and other people exerting pressure are most welcome. But at the same time, looking at the matatu themselves should also not take advantage to justify unreasonable increment,” said the COFEK secretary general, adding that the government can take administrative action without necessarily going to parliament to address the crisis

Mutoro called on the government to take immediate administrative measures to ease the burden on consumers, including reducing certain levies on fuel, adding that there has been a lack of transparency in fuel pricing citing undisclosed costs within the supply chain.

According to him, the lack of accountability in fuel pricing remains the biggest concern, with far-reaching implications on the economy, warning that rising fuel costs would inevitably drive up transport costs and the overall production cost, with consumers bearing the brunt.

“We also are not sure about the hidden costs, including the costs that are associated with the empty Paloma consignments. Invoices were issued, but we don't know when they'll be able to be paid by the Oil Marketing Companies,” said Mutoro, citing the Sh8 billion fuel scandal that led to the entry of substandard fuel into Kenya’s market.

On inflation, Mutoro said the impact of rising fuel costs is already being felt and is likely to worsen.

“Inflation is almost automatic. When you touch fuel, you’re touching production, you’re touching the cost of transport. In production alone, the cost of transport is at about 30 to 40 per cent,” he said, adding that pricing at store markers is being reviewed on a nearly daily basis due to lack of market predictability.

Mutoro further warned that the economic strain could spill over into political instability, particularly as the country heads into an election cycle.

On long-term solutions, the COFEK official called for reforms in fuel procurement, advocating for a return to a competitive procurement system through an enhanced Open Tender system.

He also called for a review of taxes and levies imposed on fuel, such as the Road Maintenance Levy and Petroleum Development Levy, questioning their effectiveness and transparency.

Mutoro urged Parliament to play a stronger role in regulating the sector, warning against concentrating too much power in regulatory agencies.

“Parliament should actually legislate on it so that they don’t leave EPRA with too much power that is actually being abused,” he said.

He dismissed claims by EPRA that the current crisis is purely driven by global market forces, instead blaming policy failures, accusing the government of conflict of interest in G-to-G fuel procurement arrangements, and arguing that it lacks the moral authority to explain the crisis.

“The government is in the business and with the G-to-G arrangement, it is conflicted. So, it lacks the moral authority to be able to explain the crisis because it is the one that has failed,” he said, warning that without reforms, to allow competitive pricing and greater transparency, consumers will continue to suffer.