Oil price surge piles Sh19bn burden on Kenya as lobby calls for shift to renewables

Kenyan households and businesses paid up to Sh19 billion more for fuel in the first two months of the Iran war, piling fresh pressure on an already strained economy and renewing calls for a transition to cheaper, decentralised renewable energy.

New estimates released by 350.org East Africa show that oil price spikes added between $143 million (Sh18.5 billion) and $150 million (Sh19.4 billion) in extra costs within just 60 days, excluding wider knock-on effects such as higher food prices, inflation and rising gas costs.

Campaigners say the surge has effectively transferred wealth from ordinary consumers to global fossil fuel firms, even as households struggle to meet basic energy needs.“This is a staggering injustice,” said Rukiya Khamis during a briefing in Nairobi. “Fossil fuel corporations are posting record-breaking profits while families struggle to keep the lights on.”The lobby group argues that the funds lost to higher oil prices could instead have financed solar power for about 150,000 Kenyan homes, significantly easing energy costs in the long term.

The briefing marked the launch of a global campaign dubbed We Pay, They Profit, which is pushing governments to reduce reliance on fossil fuels and invest in clean, affordable energy systems.

According to Amos Wemanya, the continued dependence on oil is both environmentally and economically unsustainable.“The fossil fuel era is not just ecologically unsustainable, it is economically indefensible,” he said. “A transition to decentralised renewables is the surest investment of our generation.”The findings come amid growing concern over global energy volatility.

350.org estimates that soaring oil and gas prices could cost the global economy between $600 billion and $1 trillion by the end of 2026.Beyond direct fuel costs, households are also burdened by what campaigners describe as “hidden” fossil fuel expenses — including subsidies, health impacts and climate-related damage — estimated at $12 trillion annually worldwide.

Savio Carvalho said the recurring price shocks underline the urgency of shifting to renewable energy.“The lesson is clear: the less reliant we are on fossil fuels, the more protected ordinary people are from price shocks,” he said.

Lobbyists are now urging the Kenyan government and regional policymakers to ring-fence public funds for decentralised renewable energy projects, particularly targeting communities hardest hit by climate change and rising living costs.

They argue that such investments would not only stabilise energy prices but also create jobs and build resilience against future global shocks.