The Energy and Petroleum Regulatory Authority (EPRA) of Kenya has partially rejected the new pipeline transport tariff increase requested by the Kenya Pipeline Company (KPC), capping the tariff rates below what the company had sought. This move was reportedly taken to protect consumers by preventing further hikes in fuel prices in the near future.
According to an official gazette notice published by the authority (EPRA) on Friday, May 15, 2026, pipeline transport charges for the current financial year will remain flat and unchanged. However, it approved a multi-year tariff structure that allows for marginal, gradual price adjustments over the next two consecutive financial years.
Accordingly, the regulator retained the previous tariff at Ksh 5.44 per cubic metre per kilometre for the 2025/26 financial year. It then allowed slight adjustments for the subsequent years, capping it at Ksh 5.53 per cubic metre per kilometre for the 2026/27 financial year, and Ksh 5.83 per cubic metre per kilometre for the 2027/28 financial year.
In its application to the regulatory authority, Kenya Pipeline Company sought to raise transport charges to Ksh 5.56 per cubic metre per kilometre for the current year. Furthermore, it wanted the tariff to steadily increase to Ksh 6.61 by the 2027/28 financial year. The company justified this requested price hike by explaining that the extra revenue would be invested in major infrastructure upgrades and expansions.
However, because the new tariff approved by the regulator is significantly lower than what the company requested, it has effectively countered a silent price hike at the pump that would have severely impacted consumers across the country. With fuel prices in Kenya sitting at historic highs since 2022, the new decision offers some measure of relief to the public.
Pipeline transport tariffs are among the primary criteria the regulator considers when calculating the monthly retail prices of petroleum products. Therefore, any type of increase in this tariff would have added extra pressure over and above the fuel price hikes announced by the authority on Thursday, May 14. Had the higher tariff proposed by the company been approved, the increased transport cost would have been directly factored into depot pricing, ultimately driving up retail fuel prices significantly—particularly in Nairobi and inland towns like Nakuru, Eldoret, and Kisumu.
In the same notice, the authority (EPRA) also scaled back the terminal storage fees that Kenya Pipeline had requested to add across regional fuel depots nationwide. This has further shielded oil marketers and dealers from additional cost pressures.
For instance, in Nairobi, Kenya Pipeline had sought to raise the terminal tariff to Ksh 2,912.27 per cubic metre, but the regulator approved a rate of only Ksh 2,851.80. Similarly, proposed upward adjustments for key storage depots in Western Kenya, specifically Kisumu and Eldoret, were rejected. While the company requested a rate of Ksh 4,330 per cubic metre, the authority capped the charges at Ksh 4,234.41 for Kisumu and Ksh 4,238.42 for Eldoret.
The release of this notice comes at a time of immense tension within the country’s transport sector. On Monday, May 18, 2026, public transport (matatu) operators across Kenya launched a nationwide strike, triggering massive transport disruptions.
Matatu owners and drivers initiated the protest strike due to the recent sharp spike in fuel prices. Under the latest monthly price review enacted by EPRA, the price of a litre of petrol surged by Ksh 16.65, while diesel jumped by Ksh 46.29, fueling widespread public outcry and unrest across the nation.
