In recent months, retail prices for key fuel in Nairobi remained steady at KSh 184.52 per litre for super petrol, KSh 171.47 for diesel, and KSh 154.78 for kerosene. These prices were effective for the November to December 2025 cycle, marking the third straight month of stability at these levels. The unchanged prices cover the peak travel and festive period, when demand typically rises.
Stable fuel prices provide immediate relief for households. Transport fares tend to stay steady, easing pressure on daily commuters. Families benefit as the cost of goods rises more slowly, since transport forms a large part of the price of most products.
Data from the Kenya National Bureau of Statistics (KNBS) shows that inflation in November 2025 eased slightly to 4.5%, down from 4.6% in October. While stable fuel prices alone do not fully control inflation, they reduce short term cost pressures, especially in the transport sector.
Transport and logistics businesses also benefit. Small enterprises that rely on delivery or travel experience fewer operational shocks. Operators such as matatus, boda bodas, and trucking companies can maintain predictable fares and service costs. Predictable fuel prices help businesses plan budgets and avoid sudden price hikes.
The Safaricom 15% stake sale earlier this year highlighted the importance of public participation in economic decisions, including energy and transport policy. Citizens actively engaged in consultations, showing that predictable fuel costs and transparent policies are both key to managing household expenses.
Limits of Stability and Broader Implications
Even with stable prices, some challenges remain. Transport fares may still rise due to other operational costs. In November 2025, transport costs rose by 5.1% year on year, despite stable fuel prices. This indicates that fuel stability can moderate but not fully eliminate the cost pressures faced by citizens.
Stable fuel prices also help governments and regulators. They provide predictability for budgeting and planning, particularly during peak demand periods. Policymakers can manage subsidies and cross subsidisation more effectively when fuel costs do not fluctuate sharply.
However, stable prices are not permanent protection. Global oil market volatility, taxes, and supply chain disruptions can still influence future fuel costs. If landed costs increase, regulators may need to adjust prices or continue subsidising fuel, which could strain public finances.
In addition, stable fuel prices do not reduce overall high costs compared to previous years. For example, petrol prices in December 2024 were around KSh 176.29 per litre, meaning households still pay more than last year despite short-term stability.
Keeping fuel prices steady provides a cushion for citizens and businesses. It reduces pressure on transport costs, moderates short-term inflation, and helps households and small enterprises plan their budgets. Yet long-term relief depends on broader strategies, including alternative energy solutions, efficient transport systems, and transparent regulatory frameworks. Stable fuel prices are an important tool, but they work best when paired with comprehensive economic policies that protect citizens from rising living costs.
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