Global oil prices have surged past KSh 14,500 per barrel, causing Kenyan consumers to face higher fuel and electricity costs.Murban crude, Kenya's benchmark for oil imports, rose over 22% to $112 per barrel due to Middle East tensions and shipping route uncertainties.

The Energy Cabinet Secretary warned that renewed conflicts are driving up prices, with the government spending over KSh 20 billion on subsidies since April.EPRA kept fuel prices unchanged for July-August 2026, but consumers still pay KSh 214 per litre for Super Petrol and KSh 222 per litre for Diesel.Electricity tariffs also increased by more than KSh 5 per unit due to fuel costs and foreign exchange losses.Economists predict prices will remain high for months, as the pricing formula delays relief.The government has extended an 8% VAT reduction on petroleum products until October 2026 but faces challenges with dwindling subsidies.Manufacturers and importers are also struggling with rising costs linked to Gulf conflicts.