Transport operators in the country are set to revise freight charges after a sharp rise in diesel prices pushed up running costs across the road transport sector, prompting industry-wide adjustments announced by the Kenya Transporters Association.
The Kenya Transporters Association issued an advisory on April 14, 2026, noting that diesel prices had moved from Sh163 to Sh203 per litre, an increase of about 24.5 percent. The association said the jump has placed heavy pressure on transport operations, where fuel remains the biggest cost factor.
It said fuel accounts for about 55 percent of total operating costs in road freight transport, making any change in pump prices a direct trigger for changes in transport charges.
“Members are reminded that fuel constitutes the single largest cost component in road freight transport, accounting for approximately 55% of total operating costs,” the advisory stated.
Based on its internal assessment, the association said the rise in diesel prices translates into an increase of about 13–14 percent in overall transport operating costs. It explained the calculation as follows:
“Transport Cost Increase (%) = Fuel Price Increase (%) × Fuel Cost Share (%) 24.5% x 55% = 13.5% (approx.).”
The association said such cost pressure cannot be absorbed by operators without adjustments to freight pricing, warning that continued operations under old rates would strain businesses.
“Members are advised that such a substantial rise in input costs cannot be absorbed sustainably,” the statement read, adding that transporters must act promptly to safeguard their businesses.
As a result, members have been directed to review their cost structures and adjust transport rates in line with the new market conditions. The association also urged transporters to maintain clear communication with clients and contractual partners during the adjustment period.
“Members are further encouraged to engage their customers and contractual partners promptly, clearly communicating the basis of these adjustments to ensure transparency and continuity of service,” the advisory added.
The association said it will continue monitoring fuel price movements and support transporters in managing ongoing changes in operating costs across the sector.
The latest directive comes after the Energy and Petroleum Regulatory Authority announced a fresh fuel price review affecting petroleum products.
The Energy and Petroleum Regulatory Authority raised diesel prices by Sh40.30 and petrol by Sh28.69, while kerosene prices remained unchanged. The new rates apply for the period April 15 to May 14, 2026.
EPRA attributed the changes to rising global oil prices and increased landed costs of imported petroleum products. To reduce pressure on consumers, the government reduced VAT from 16 percent to 13 percent and indicated that the Petroleum Development Levy will be used to help stabilise prices.
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