The Consumer Federation of Kenya (COFEK) has demanded the immediate suspension of the Petroleum Development Levy (Amendment) Order, 2025, warning it could increase the cost of transport and everyday goods.
The lobby group argues the levy was introduced without adequate public participation, placing additional financial pressure on consumers already struggling with the high cost of living.
What the New Levy Means
Under the new order:
- KSh 5,400 per 1,000 litres charged on petrol, diesel, and jet fuel
- KSh 5,400 per 1,000 kilograms charged on LPG (cooking gas)
- Applies across petroleum products nationwide
This translates to higher fuel costs, which typically lead to:
- Increased matatu fares
- Higher delivery charges
- Rising food prices
- Increased manufacturing costs
COFEK Raises Legal Concerns
COFEK says the levy — gazetted in November 2025 — was implemented without parliamentary debate or stakeholder consultation, which they argue violates constitutional principles on transparency.
“This is a direct affront to Article 10 of the Constitution of Kenya,” said Stephen Mutoro.
LPG Tax Could Hit Households Hard
The lobby also warned that taxing LPG contradicts efforts to promote clean cooking energy.
Higher gas prices could:
- Push families back to charcoal and kerosene
- Increase household expenses
- Slow adoption of clean energy
Impact on Nairobi Commuters
If the levy remains:
- Matatu fares likely to increase
- Ride-hailing costs may rise
- Delivery and courier charges could go up
- Cost of basic goods expected to climb
COFEK’s Demands
COFEK is now calling for:
- Immediate suspension of the levy
- Audit of all fuel-related taxes
- Streamlined and transparent fuel pricing framework
- Parliamentary approval for future changes
The group urged both the government and the National Assembly to ensure future fuel levies undergo public scrutiny before implementation.
For commuters, any increase in fuel costs often translates directly into higher daily transport expenses — making this debate critical for Nairobi residents.
