Kenya has sharply raised fuel prices, with diesel recording its largest single increase on record, as a conflict involving Iran sends shockwaves through global oil markets and compounds domestic energy controversies.

The Energy and Petroleum Regulatory Authority (EPRA), Kenya's fuel pricing regulator, raised diesel prices by 40 Kenyan shillings — bringing the cost to 206 shillings (approximately $1.60 or £1.20) per litre — while petrol rose by 28 shillings to a comparable level. The authority said the increases reflect higher global crude oil and shipping costs. Notably, the hike came despite the Kenyan government cutting value-added tax on fuel from 16% to 13%, a measure intended to soften the blow to consumers. The new prices will remain in effect until the next scheduled review on 14 May.

The price surge is directly linked to turmoil in global energy markets following a conflict involving Iran that began on 28 February, which has severely disrupted shipping through the Strait of Hormuz — a narrow waterway through which a significant share of the world's oil and gas supplies pass. Although a conditional two-week ceasefire was signed last Wednesday and includes provisions to reopen the strait, shipments through the corridor have largely been at a standstill, and concerns persist that the energy crisis could deepen.

The announcement has landed in an already tense domestic environment. Fuel shortages have been reported in parts of the country, though the government insists overall supplies are adequate and has accused some fuel distributors of deliberately hoarding stock. Compounding public anxiety is a separate scandal involving a fuel consignment reportedly imported last month outside Kenya's official government-to-government procurement arrangements, at a significantly higher cost and with questions surrounding its quality. Reports that this substandard fuel may have been blended into existing storage reserves sparked widespread outrage. The government says it cancelled the consignment and barred its sale, but the matter remains under investigation following the arrest and resignation of senior energy officials. EPRA confirmed that the disputed consignment played no role in calculating the new prices.

Kenya is not alone in struggling to protect consumers from the global energy shock. Across Africa, governments are deploying a range of emergency measures: South Africa announced a temporary fuel levy cut, while Zambia, Namibia, and Ghana have introduced similar relief steps. South Sudan has moved to ration electricity, and Ethiopia has prioritised certain sectors to manage supply. Kenya's own VAT reduction on fuel is currently scheduled to remain in place until July, though whether it will prove sufficient to ease pressure on households and businesses remains to be seen.