The government must reduce transport cost to ease household pressure and contain living costs for Kenyans
18 May 2026
The Fight Inequality Alliance (FIA) Kenya raises urgent concern over the recent fuel price increase announced by the Energy and Petroleum Regulatory Authority (EPRA), which has triggered nationwide disruption in public transport and sharp increases in the cost of daily mobility.
Public transport fares have risen by up to 50%, making routine travel unaffordable for many citizens. Informal workers face both higher costs of movement and reduced earning opportunities due to limited mobility.
These costs extend beyond transport. Higher fares have reduced household disposable income, forcing cuts in food, rent, healthcare, and education spending. At the same time, the cost of essential goods, especially food, have risen as transport costs pass through supply chains.
These developments reflect deeper structural weaknesses in Kenya’s fuel pricing, taxation, and debt systems, with the greatest burden falling on low- and middle-income households. While global shocks have contributed to rising costs, policy decisions continue to amplify their impact on the 99%, while protecting elite interests and concentration of benefits at the top.
FIA Kenya calls for the following urgent actions to stabilize transport costs and address the crisis:
- Cut fuel taxes immediately to reduce the cost of living and transport fares
Parliament must be recalled to review the latest fuel price hikes and reduce fuel taxes, including excise duty and VAT components on petroleum products, to deliver immediate relief at the pump and lower transport costs across the economy.
- Classify public transport as an essential service and protect commuters from fare spikes
Public passenger transport must be classified as an essential social service, with targeted support for operators and directing the Petroleum Development Levy toward stabilising commuter fares during fuel price increases.
- End opaque fuel procurement and strengthen independent oversight of pricing
Government-to-government (G-to-G) oil procurement must be replaced with a transparent Open Tender System (OTS), with all import contracts and pricing structures publicly disclosed and independently reviewed to reduce hidden costs. EPRA’s pricing formula must be independently audited, with civil society, consumer groups, and commuter representatives included in oversight and supported by public reporting on pricing decisions. In light of recent allegations of irregularities in oil procurement, all individuals and entities found responsible must be fully investigated and prosecuted.
- Establish an independent debt audit to expose illegitimate debt and free fiscal space for social spending
An Independent Public Debt Audit Commission must be established to review Kenya’s debt stock and identify questionable obligations, with findings guiding restructuring where appropriate and recovered fiscal space directed toward transport subsidies, food price stabilisation, and social protection.
FIA Kenya stands with workers, informal sector earners, and households most affected by rising transport and living costs. We call for urgent action to stabilise mobility, reduce regressive taxation, and strengthen transparency in fuel pricing and public debt management.
We also call for restraint in the policing of public demonstrations linked to economic hardship and for meaningful engagement with affected communities.
MEDIA CONTACT
Brenda Osoro | National Coordinator, Fight Inequality Alliance (FIA) Kenya | brenda.osoro@fightinequality.org