Kenya Cuts Fuel Prices as Global Oil Costs Drop

Drivers across Kenya are celebrating a small but meaningful win as fuel prices drop for the first time in 2026.

The Energy and Petroleum Regulatory Authority announced Wednesday that petrol prices will fall by 2 shillings per liter, with diesel and kerosene each dropping by 1 shilling. The cuts took effect January 15 and will last through mid-February.

In Nairobi, super petrol now costs 182.52 shillings per liter, diesel sits at 170.47 shillings, and kerosene at 153.78 shillings. For families and small business owners who rely on vehicles and generators, these reductions mean real money back in their pockets.

The price drops stem from falling global oil prices. Murban crude, the benchmark Kenya uses for fuel imports, fell from $70.22 per barrel in November to $65.79 in December.

Kenya imports all its petroleum in refined form, making local prices extremely sensitive to international market shifts. This time, those global trends worked in consumers' favor.

Kerosene saw the sharpest decline in import costs, dropping nearly 9 percent. Diesel fell over 4 percent, while petrol dipped slightly but still enough to trigger relief at the pump.

The Ripple Effect

Lower fuel costs touch nearly every corner of Kenya's economy. Transportation becomes more affordable, helping workers commute without stretching their budgets. Small businesses that depend on delivery vehicles see their operating costs ease.

Families who cook with kerosene, particularly in rural areas without electricity access, will feel the relief most directly. For households managing tight budgets, saving even a few shillings per liter adds up quickly over weeks and months.

The stable shilling also played a quiet but crucial role. The currency held steady at about 129 shillings per dollar, protecting Kenyans from the currency fluctuations that often erase gains from lower international prices.

This price relief shows how global economic shifts can sometimes work in favor of everyday people, bringing tangible benefits to millions who just need to get to work, school, and home.