By Reporter
The Special Funds Accounts Committee has questioned the Energy and Petroleum Regulatory Authority (EPRA) over the fuel price increase announced on October 14, 2026, seeking clarification on the factors behind the adjustment and its implications for consumers.
The committee, chaired by Hon. Fatuma Mohammed (Migori), raised concerns over the impact of the increase on Kenyans, particularly following the President’s assurances that fuel prices would not rise. Members also questioned the adequacy of the explanations provided by the Authority to justify the adjustment.
During the meeting, EPRA officials attributed the increase to disruptions in global fuel supply linked to the ongoing conflict in the Middle East, which has affected shipments from the Gulf region.
EPRA Director-General Eng. Edward Mwirigi explained that attacks on fuel infrastructure and vessels had disrupted supplies, forcing importers to seek alternative sources, including Singapore, where fuel was reportedly more expensive.
He warned that prices could rise further during the winter season, depending on developments in the Middle East, adding that the Authority was closely monitoring the situation.
Mohammed sought to establish whether the public was aware of the supply disruptions, including reports of two fuel vessels being bombed.
In his response, Eng. Mwirigi said Saudi vessels had been targeted, contributing to the supply challenges facing the country.
He maintained that Kenya’s fuel prices remained competitive compared with those of neighbouring countries despite the prevailing supply constraints.
The Director-General further noted that the Authority was exploring alternative energy sources, although transitioning from conventional petroleum products would be challenging given their widespread use.
The Committee also examined the Auditor-General’s reports on the financial statements of the EPRA Staff Mortgage and Car Loan Scheme for the financial years 2021/2022 to 2024/2025.
The audit queries covered several areas, including irregular interest charges, budgetary controls, loan administration costs, interest earned on loan deposits, construction loans advanced to staff and risk management.
According to EPRA’s submissions, the interest rate charged on car loans was reduced from four per cent to three per cent in August 2022 following an amendment to the agreement with the scheme administrator, Kenya Commercial Bank (KCB).
The Authority further indicated that its Staff Mortgage and Car Loan Policy was approved by the Board in December 2023, addressing concerns raised by the Auditor-General regarding delays in formalising the scheme’s policy framework.
The Auditor-General also raised concerns over the absence of an approved budget for interest income and administration costs in the 2023/2024 financial year. EPRA explained that the scheme’s budget was approved by the Board and managed within the Authority’s consolidated budget.
On construction loans, the Authority stated that funds were disbursed in tranches, with progress reports and inspections undertaken before additional funds were released for subsequent stages of construction.
The Committee will consider the issues raised during the meeting and EPRA’s responses as it prepares its report on the Auditor-General’s findings for the four financial years under review.
