Fuel prices in Kenya will drop effective February 15, 2026, following the latest monthly review by the Energy and Petroleum Regulatory Authority (EPRA). The regulator attributed the reduction largely to a decline in the average landed cost of imported refined petroleum products — the key international cost component of fuel pricing in Kenya.
The adjustments come as modest relief for motorists and businesses facing high fuel-related costs, though prices remain elevated compared with earlier in the year.
Average Landed Cost Changes
EPRA’s review shows that between December 2025 and January 2026, the average landed cost of imported petroleum products fell across the board:
| Product | Dec 2025 Landed Cost | Jan 2026 Landed Cost | % Change |
|---|---|---|---|
| Super Petrol | Ksh 76,288.03/m³ | Ksh 74,239.91/m³ | ↓ 2.69% |
| Diesel | Ksh 80,733.36/m³ | Ksh 75,587.29/m³ | ↓ 6.37% |
| Kerosene | Ksh 78,260.16/m³ | Ksh 77,135.62/m³ | ↓ 1.44% |
These figures include the cost of acquiring products overseas and transporting them to Kenya’s ports, before local distribution, taxes, and margins. The decline in these costs is the primary driver behind lower pump prices.
New Pump Prices in Nairobi
For the February–March 2026 pricing cycle, fuel prices in Nairobi are:
-
Super Petrol: Reduced by Ksh 4.24 per litre → Ksh 178.28
-
Diesel: Reduced by Ksh 3.93 per litre → Ksh 166.54
-
Kerosene: Reduced by Ksh 1.00 per litre → Ksh 152.78
Prices in Other Major Towns
Pump prices vary regionally due to distribution and transportation costs:
-
Mombasa: Super Petrol Ksh 175.00, Diesel Ksh 163.26, Kerosene Ksh 149.49
-
Nakuru: Super Petrol Ksh 177.34, Diesel Ksh 165.95, Kerosene Ksh 152.21
-
Eldoret: Super Petrol Ksh 178.16, Diesel Ksh 166.77, Kerosene Ksh 153.03
-
Mandera: Super Petrol significantly higher at Ksh 200.41
EPRA notes that regional differences reflect transportation costs and security-related surcharges in remote areas.
Economic Context and Implications
Kenya imports all its refined petroleum products, meaning local retail prices are heavily influenced by global market benchmarks and the US dollar exchange rate. A stronger Kenyan shilling or lower global prices eases landed costs, while a weaker shilling or rising oil prices pushes them up.
Note: Lower landed costs don’t immediately translate into equivalent pump price reductions, as domestic taxes, VAT (16%), and excise duties also contribute to the final price.
This latest drop follows a January 2026 review, when EPRA also reduced prices, though the decreases were smaller than the current adjustments.
What the Fuel Prices Kenya Drop Means for the Economy
The reduction is expected to have modest but positive effects, particularly in easing short-term cost pressures. Economists caution, however, that the impact is limited:
-
Inflationary Pressure Eases Slightly: Lower fuel prices reduce transport and production costs, potentially slowing inflation, but the effect is incremental given high base prices.
-
Transport and Logistics Costs See Limited Relief: Freight and public transport operators benefit, but savings may not be fully passed to consumers immediately.
-
Household Spending Power Improves Marginally: Small savings for households on fuel may free up income for essentials, though overall cost-of-living pressures remain high.
-
Business Confidence Gets a Mild Boost: Stable or declining fuel prices support short-term planning and cash-flow management in manufacturing, agriculture, and logistics.
-
Exchange Rate and Import Bill Implications: Lower average landed costs ease pressure on foreign exchange reserves and the balance of payments, contributing to macroeconomic stability.
-
Fiscal Impact Remains Neutral: Domestic fuel taxes and levies remain significant, so government revenue is largely unaffected.
Bottom Line
The fuel prices Kenya reduction is economically positive but limited. It cushions consumers and businesses at the margins, supports inflation control, and signals easing import costs, but it does not fundamentally alter Kenya’s cost-of-living challenges. Sustained price declines or broader policy measures would be required for a stronger impact.
Outlook Until Next Review
The new prices will remain in effect until the next scheduled review on March 14, 2026, when adjustments will again reflect global product costs, exchange rates, and domestic taxation.
