Kerosene users will continue paying below Sh200 a litre after the government absorbed part of the rising cost of the fuel to protect consumers from a sharp increase at the pump.
The Energy and Petroleum Regulatory Authority (Epra) has maintained the price of kerosene at Sh191.38 per litre in Nairobi for the monthly pricing period ending October 14, even as its landed cost rose by nearly 10 per cent last month.
Petrol and diesel prices have also been retained at Sh214.03 and Sh217.86 per litre respectively in Nairobi.
The decision means kerosene consumers have avoided a Sh13.14 increase that would have pushed the price to Sh204.52 per litre in the absence of the cross-subsidy.
Kerosene is mainly used by low-income households for cooking and lighting, making its price an important concern for families already facing higher living costs.
Under the arrangement, the State diverted Sh5.77 from every litre of diesel and Sh1.28 from every litre of petrol to support kerosene consumers. The system allows part of the money collected from the other fuels to offset the higher cost of kerosene.
Epra acting director-general Joseph Oketch confirmed that there would be no changes in the maximum pump prices for the three petroleum products.
"In the period under review, the maximum allowed petrole-um pump prices for Super Petrol, Diesel and Kerosene remain un-changed, Joseph Oketch, the acting director-general of Epra, said in the notice.
The decision comes at a time when the cost of fuel remains a major factor in the prices of goods and services. Farmers, public transport operators and industries depend on diesel and factor fuel expenses into the prices they charge.
Keeping diesel prices unchanged could therefore make it harder for inflation to come down, with the rate already increasing slightly last month.
Inflation rose to 6.6 per cent from 6.5 per cent in July. The latest figure was the second-highest in more than two and a half years, with the highest being 6.7 per cent recorded in May 2026.
The latest review also shows a wide difference in the movement of landed costs for the three fuels.
Diesel recorded the largest increase, with its landed cost rising by 11 per cent from $855.59 (Sh111,004.24) per cubic metre in July to $957.05 (Sh124,148.52) last month.
Kerosene followed with a 9.71 per cent rise, moving from $915.01 (Sh118,713.39) to $1,003.87 (Sh130,222.01) per cubic metre.
Unlike the two fuels, petrol became cheaper to import. Its landed cost fell by 7.87 per cent from $948.92 (Sh123,112.88) per cubic metre in July to $874.26 (Sh113,409) last month.
The fall in petrol costs could have resulted in lower pump prices, but the government instead used part of the benefit to cushion kerosene users from the higher cost of the commodity.
The price relief could face fresh pressure in the next review after refined fuel prices increased from last week following the worsening conflict in the Middle East. Consumers could therefore face higher fuel prices when the next monthly rates are announced.