Mbadi Explains Why Fuel Remains Cheaper in Tanzania Compared to Kenya
Speaking on Tuesday, May 19, during an interview at a local radio station, Mbadi dismissed claims that Kenya’s fuel prices were abnormally high compared to neighbouring countries, arguing that Tanzania is still consuming cheaper fuel imported earlier in the year before global oil prices surged.
According to Mbadi, Kenya is currently using fuel imported in April 2026 when international crude oil prices had already risen sharply due to global geopolitical tensions, while Tanzania is still relying on March imports purchased at significantly lower prices.
“The difference in fuel prices in Kenya and Tanzania is not too big. Tanzania is still using fuel meant for March this year, while Kenya is currently using fuel brought into the country in April,” Mbadi explained.
The Treasury CS insisted that once Tanzania and Uganda begin consuming their April fuel consignments, prices in those countries are expected to increase substantially as well.
“In the next two to three weeks, when Tanzania and Uganda begin using their April stocks, their fuel prices will go very high compared to Kenya,” he stated.
Currently, diesel prices in Tanzania retail at approximately Ksh204 per litre compared to Ksh232 in Kenya, while super petrol in Tanzania sells at around Ksh211 per litre compared to Kenya’s Ksh214.
The widening gap has fueled criticism from transport operators, private motorists, and businesses already struggling with rising operational costs linked to high fuel prices.
However, Mbadi argued that Kenya’s fuel consumption patterns differ greatly from those of neighbouring countries because of the size of its economy and demand levels.
“What people should know is that Kenya uses a lot of fuel compared to Tanzania because our economy is big, so we consume a lot of fuel,” Mbadi noted.
The CS further explained that Kenya’s role as a regional transport and logistics hub also contributes to its higher fuel demand, with large volumes consumed by industries, public transport, and cross-border trade operations.
The protests forced the government into emergency negotiations with transport stakeholders after matatus, boda bodas, and digital taxi operators temporarily withdrew services over what they termed unbearable operational costs.
Following the demonstrations, EPRA revised diesel prices downward by Ksh10.06 per litre after consultations with transport operators, although many stakeholders insisted the reduction was insufficient.
Despite the pressure, Mbadi expressed optimism that fuel prices may begin dropping in the coming months if global oil prices continue stabilising.
According to Mbadi, global fuel markets had already started responding positively after reports emerged that a planned military escalation involving Iran had been temporarily halted to allow diplomatic engagement.
“When you saw Trump’s announcement yesterday, you could see that global fuel prices have begun going down, and so we expect that if the trend continues, then Kenyans should expect a reduction in prices from June onwards,” Mbadi said.
Even so, pressure continues mounting on the government to cushion Kenyans from the high cost of fuel, with businesses warning that continued increases could further raise the cost of transport, food, and essential commodities across the country.
As negotiations between the government and transport stakeholders continue, many consumers remain hopeful that the anticipated global oil price decline will eventually translate into relief at local fuel stations in the coming weeks.Treasury Cabinet Secretary John Mbadi has moved to explain the growing fuel price disparity between Kenya and Tanzania, attributing the difference largely to the timing of petroleum imports rather than taxation or economic mismanagement.
Speaking on Tuesday, May 19, during an interview at a local radio station, Mbadi dismissed claims that Kenya’s fuel prices were abnormally high compared to neighbouring countries, arguing that Tanzania is still consuming cheaper fuel imported earlier in the year before global oil prices surged.
According to Mbadi, Kenya is currently using fuel imported in April 2026 when international crude oil prices had already risen sharply due to global geopolitical tensions, while Tanzania is still relying on March imports purchased at significantly lower prices.
“The difference in fuel prices in Kenya and Tanzania is not too big. Tanzania is still using fuel meant for March this year, while Kenya is currently using fuel brought into the country in April,” Mbadi explained.
The Treasury CS insisted that once Tanzania and Uganda begin consuming their April fuel consignments, prices in those countries are expected to increase substantially as well.
“In the next two to three weeks, when Tanzania and Uganda begin using their April stocks, their fuel prices will go very high compared to Kenya,” he stated.
The comments come at a time when many Kenyans have increasingly questioned why fuel appears significantly cheaper in neighbouring Tanzania despite regional economic similarities.
Currently, diesel prices in Tanzania retail at approximately Ksh204 per litre compared to Ksh232 in Kenya, while super petrol in Tanzania sells at around Ksh211 per litre compared to Kenya’s Ksh214.
The widening gap has fueled criticism from transport operators, private motorists, and businesses already struggling with rising operational costs linked to high fuel prices.
“What people should know is that Kenya uses a lot of fuel compared to Tanzania because our economy is big, so we consume a lot of fuel,” Mbadi noted.
The CS further explained that Kenya’s role as a regional transport and logistics hub also contributes to its higher fuel demand, with large volumes consumed by industries, public transport, and cross-border trade operations.
Recent fuel price hikes have sparked intense political and economic debate across the country, with public transport operators staging demonstrations that disrupted services in major towns and cities earlier this week.
The protests forced the government into emergency negotiations with transport stakeholders after matatus, boda bodas, and digital taxi operators temporarily withdrew services over what they termed unbearable operational costs.
Following the demonstrations, EPRA revised diesel prices downward by Ksh10.06 per litre after consultations with transport operators, although many stakeholders insisted the reduction was insufficient.
Despite the pressure, Mbadi expressed optimism that fuel prices may begin dropping in the coming months if global oil prices continue stabilising.
According to Mbadi, global fuel markets had already started responding positively after reports emerged that a planned military escalation involving Iran had been temporarily halted to allow diplomatic engagement.
“When you saw Trump’s announcement yesterday, you could see that global fuel prices have begun going down, and so we expect that if the trend continues, then Kenyans should expect a reduction in prices from June onwards,” Mbadi said.
Even so, pressure continues mounting on the government to cushion Kenyans from the high cost of fuel, with businesses warning that continued increases could further raise the cost of transport, food, and essential commodities across the country.
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Mbadi Explains Why Fuel Remains Cheaper in Tanzania Compared to Kenya
