NAIROBI, Kenya, Mar 19 – Advocate of the High Court Francis Wanjiku has called for policy reforms at the Energy and Petroleum Regulatory Authority (EPRA), urging the Cabinet to realign the regulator’s fuel pricing role with the Energy Act, 2019.
In a letter to Energy Cabinet Secretary J. Opiyo Wandayi, Wanjiku argued that EPRA’s current pricing model contradicts the Act’s objectives, exacerbating fiscal instability while failing to ease the burden on consumers facing high fuel costs.
“The Cabinet must urgently review EPRA’s mandate and enact reforms to align its practices with the Act’s intent,” Wanjiku stated.
“The current approach conflicts with the broader goals of economic efficiency, affordability, and sustainability outlined in Sections 4 and 5 of the Act.”
While EPRA is authorized under Section 10 to regulate petroleum pricing, Wanjiku said its reliance on price caps and subsidies distorts supply and demand, stifles competition, and increases the tax burden.
“Price caps discourage fuel conservation and innovation, undermining competition among oil marketers,” he noted. “This contradicts the Act’s goal of an efficient petroleum sector.”
Wanjiku also criticized EPRA’s pricing formula, arguing that high taxes-comprising VAT, excise duties, and levies-consume nearly half of the pump price, rendering price controls ineffective.
“Subsidizing fuel prices only masks the deeper issue of an overtaxed fuel supply chain,” he added.
“Meanwhile, these subsidies strain public finances, worsening Kenya’s debt, which now exceeds 70 percent of GDP.”
Wanjiku proposed key amendments to Section 10 of the Act, including phasing out price caps, introducing targeted subsidies, refocusing EPRA’s mandate on renewable energy investments and enhancing transparency by amending Section 6 to shield EPRA from political interference.
Amid growing public dissatisfaction over fuel pricing and scrutiny of subsidies under the Petroleum Development Levy, Wanjiku urged the Cabinet to convene a stakeholder forum to discuss the proposed reforms.
“EPRA’s current practices undermine the Act’s objectives and expose Kenya to external shocks,” he warned.
“By embracing market-based pricing and sustainability, the Cabinet can secure a resilient energy future for the country.”
