The Orange Democratic Movement on 16 April sharply criticized the latest increase in fuel prices following the April–May pricing review, warning that the adjustment will deepen the economic strain facing millions of Kenyans.
In a statement, the party said the rising cost of petrol, diesel and kerosene is expected to trigger a ripple effect across key sectors of the economy, including transport, food production and small businesses.
The new prices, announced under the periodic review framework, have already sparked concern among citizens as households continue to grapple with a high cost of living and limited income growth.
ODM officials said the latest price adjustment comes at a time when many families are struggling to meet basic needs, cautioning that any increase in fuel costs inevitably translates into higher prices for goods and services.
Fuel remains a central driver of the economy, with transport costs directly influencing the price of essential commodities. Analysts note that increases at the pump often lead to higher fares and food prices within a short period.
Pressure mounts over cost of living and taxes
The party also raised concerns over the taxation structure applied to petroleum products, arguing that levies continue to push pump prices higher and place an unnecessary burden on consumers.
ODM called for a review of the tax framework, urging the government to consider reducing levies to cushion citizens from both domestic pressures and global market volatility.
Energy sector observers indicate that taxes and levies account for a significant share of fuel prices in Kenya, sometimes making up close to half of the final retail cost. This has fueled debate over whether adjustments to taxation could ease pressure on households.
The party further warned that the continued rise in fuel prices could slow economic activity, particularly for small and medium enterprises operating on tight margins. Increased operating costs may force businesses to either raise prices or scale down operations.
Economists say sustained increases in fuel prices can weaken purchasing power and reduce consumer spending, factors that may ultimately affect overall economic growth.
At the same time, political pressure is expected to intensify as public frustration grows over the rising cost of living. The issue is likely to remain central in national discourse, with leaders weighing in on possible solutions.
Government officials have previously maintained that fuel prices are largely influenced by global oil markets and exchange rate fluctuations, factors that are beyond direct domestic control. However, stakeholders continue to argue that policy decisions at the national level can help mitigate the impact on consumers.
