Global Oil Prices Rise as EPRA Raises Electricity Costs for Kenyans

Kenya could face increased pressure on energy and transport costs after global oil prices rose sharply amid fears of disruptions to oil supplies.

According to the latest Central Bank of Kenya (CBK) weekly bulletin, Murban crude oil rose to approximately Ksh10,969 per barrel on August 20, 2026, up from about Ksh10,257 per barrel on August 13.

The increase comes as Kenyans face higher electricity costs after the Energy and Petroleum Regulatory Authority (EPRA) announced tariff adjustments amounting to Ksh4.70 per kilowatt-hour for August 2026 meter readings.

The authority stated that the adjustments include a Ksh3.51 per kWh fuel energy cost charge, Ksh1.1777 per kWh foreign exchange fluctuation adjustment and a Ksh0.015 per kWh WRMA levy.

CBK Says Higher Oil Prices Could Raise Transport and Fuel Costs

CBK said the rise in international crude prices could put pressure on economies that rely heavily on imported petroleum products, including Kenya.

The bank noted that higher crude prices can increase the cost of importing fuel and, in turn, affect transportation and other businesses that depend on petroleum products.

Also Read: CBK Reveals Three Major Forces Driving Food Prices in Kenya

Despite the increase in commodity prices, the Kenya Shilling remained relatively stable against the US dollar .

CBK reported that the Shilling traded at Ksh129.49 per US dollar on August 20, compared with KSh129.40 on August 13.

It highlighted that the stability could help cushion the impact of higher international commodity prices by limiting additional foreign-exchange costs for importers.

Additionally, the bulletin noted that foreign exchange reserves remained adequate at US$15.155 billion, or KSh1.96 trillion, representing 6.3 months of import cover, above the statutory requirement for the Central Bank to endeavour to maintain at least four months of import cover.

CBK added that the reserves provide a buffer against external economic shocks and support stability in the foreign exchange market.

Gold Market Records Strong Gains

Beyond oil prices, gold also rose significantly during the week as investors sought safe-haven assets amid global uncertainty.

CBK reported that spot gold prices rose to US$4,517.87 per ounce from US$4,350.16 the previous week, attributing the increase to the weaker US dollar and increased safe-haven demand.

Also Read: Why Kenyan Companies Are Not Planning Major Hiring Spree in 2026

The activity at the Nairobi Securities Exchange (NSE) also increased, with the Nairobi All Share Index (NASI) rising by 2.72 % while the NSE 25 and NSE 20 indices increased by 2.90% and 2.24%, respectively.

Furthermore, the market capitalization increased by 2.72%, while the total number of shares traded jumped by 229.90%

The bulletin also reported that the government securities market recorded strong investor interest, with the Treasury bill auction receiving Ksh71.7 billion in bids against an advertised amount of Ksh28 billion, representing a performance of 255.9%.

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