Kenyan motorists are currently paying high prices for fuel, with petrol costing KES 226.96 per liter and diesel KES 227.76 per liter, up 13% and 22% respectively from last year. This surge in fuel prices is attributed to rising global oil prices, with Brent crude expected to average $95.34 per barrel in 2026. The impact of these price hikes is felt sharply in Kenya, which imports all its refined petroleum and relies heavily on transport, accounting for 75% of its fuel consumption.
To mitigate this issue, researchers and policy advisers are advocating for vehicle efficiency regulations in Kenya. The proposed regulations would require manufacturers and importers to steadily increase the average fuel efficiency of the vehicles they sell. This approach has been linked to successful implementations in other countries, such as Chile, where 88% of importers adjusted their supply within 18 months of introducing similar standards. The regulations could also support local vehicle assembly, with Kenya's assembly plants currently operating at less than 30% of their combined installed capacity.
A key feature of the proposed regulation is that it would assess the average fuel efficiency of vehicles an importer or manufacturer brings to market, rather than requiring every model to meet the same target. This would allow importers to improve their overall fleet average by offering more efficient petrol and diesel cars alongside hybrids and Electric Vehicles (EVs). The proposal would not ban petrol or diesel vehicles or force motorists to replace cars they already own, but would apply to vehicles entering the market, including second-hand imports.
The need for such regulations is underscored by the fact that cars imported into Kenya are often less fuel-efficient than comparable models sold in their countries of origin. For instance, over 80% of imported vehicles in Kenya come from Japan, and markets like New Zealand have their own efficiency requirements that influence the vehicles available to buyers. By adopting similar rules, Kenya could encourage importers to source more efficient models.
The proposed regulations have been adopted in 13 jurisdictions covering about 85% of the global light-duty vehicle market. The impact of these regulations has been significant, with EV prices falling by 17% and importers gaining access to three times as many electric models in Chile. In Kenya, EV registrations have risen from 5,294 in 2024 to 24,754 in 2025, indicating a growing interest in alternative fuel vehicles.
However, the transition to more fuel-efficient vehicles also raises questions about road maintenance funding. As motorists gradually shift away from petrol and diesel, alternatives such as distance-based charges, tolls, and electricity-related taxes are being considered. Despite this, fuel revenue is expected to remain steady in the near term as Kenya's vehicle fleet grows.
The discussion on the proposed regulations did not establish when they could be adopted, but their impact will depend on the final efficiency targets, implementation timelines, and whether more efficient vehicles remain affordable to Kenyan buyers. If implemented, the regulations could reduce fuel import spending, which is projected to increase from $783 million in 2025 to $1.32 billion by 2040 without intervention.
Key points
- Kenya considers new fuel efficiency regulations to reduce fuel import spending
- Proposed regulations would assess average fuel efficiency of vehicles, not require every model to meet the same target
- Adoption of similar regulations in other countries has led to significant reductions in fuel consumption and increased adoption of electric vehicles
