NAIROBI, Kenya — The Kenya Transporters Association has warned of a sharp increase in transport costs following a significant rise in diesel prices, signalling potential ripple effects across Kenya’s economy.
In an advisory issued on April 14, the association said diesel prices had increased by Sh40 per litre, from Sh163 to Sh203, representing a 24.5 per cent jump.
The lobby group noted that fuel remains the single largest cost component in road freight transport, accounting for about 55 per cent of total operating expenses.
Based on this cost structure, the association estimated that the latest price adjustment would translate into a 13 to 14 per cent increase in overall transport operating costs.
“This translates to an estimated 13–14 per cent increase in overall transport operating costs,” the advisory stated.
The association cautioned that such a substantial rise in input costs cannot be absorbed sustainably by transporters, effectively paving the way for higher freight charges across the supply chain.
Members were advised to immediately review their cost structures and adjust transport rates to reflect the new fuel pricing realities.
They were also urged to engage customers and contractual partners early to ensure transparency and continuity of service.
The advisory, signed by KTA Chairman Newton Wang’oo, underscored the broader economic implications of rising fuel costs, particularly on the cost of goods and inflation.
Fuel price fluctuations in Kenya are regulated under the monthly pricing mechanism overseen by the Energy and Petroleum Regulatory Authority, making diesel adjustments a key driver of transport and logistics costs.
Economists have previously warned that increases in diesel prices have a direct pass-through effect on the cost of essential goods, given Kenya’s heavy reliance on road transport for distribution.
The association said it would continue monitoring developments in fuel pricing while advocating for the interests of transporters across the country and the wider region.
The warning comes amid growing concerns over the rising cost of living, with fuel prices remaining a central factor in inflationary pressure and business operating costs.
With transporters expected to adjust rates upward, consumers and businesses alike are likely to feel the impact in the coming weeks as higher logistics costs filter through the economy.
