The cost of imports in the East African Community (EAC) is already higher than the global average and could rise further as the Gulf crisis disrupts supply chains and drives up fuel prices.

 

Ferrying a container in the region costs about $1.8 per kilometre, nearly double the global average of $1. That figure could rise to $2.1 as transporters pass on higher fuel costs to importers and consumers, according to the Shippers Council of Eastern Africa (SCEA).

Now the situation could worsen as the US-imposed blockade in the Gulf adds uncertainty to supply timelines.

The pressure is already visible. In Kenya, transporters have announced a 14 percent increase in rates, while the Kenya Railways Corporation (KRC) has introduced a fuel price adjuster on its 2026 cargo tariffs. Aviation operators in Kenya and Uganda have also added fuel surcharges to cushion against price volatility.

Read: Uganda’s domestic airlines raise fares as jet fuel prices surgeKRC said its new pricing model is based on a fuel rate of $1.30 (Ksh170) per litre in Nairobi, with adjustments tied to prevailing prices. The corporation runs its trains on diesel across both the standard gauge railway (SGR) and the metre gauge railway (MGR), exposing its operations directly to fuel price volatility.“There shall be a fuel price adjuster to the prevailing rates at every Energy and Petroleum Regulatory Authority (Epra)… Should the prevailing market price of fuel exceed or fall below this range, the contract price shall be adjusted in increments of four percent for every $0.076 (Ksh10) variance,” KRC said.

Under this formula, tariffs would rise by 12 percent if fuel prices reach $1.69–1.76 (Ksh221–230) per litre. No adjustment applies within a band of $1.23–1.38 (Ksh160–180) per litre, while lower prices, $0.84–0.91 (Ksh110–119) per litre, would trigger tariff reductions of 12 percent.“The basis for adjustment shall be the Epra-published fuel price for Nairobi,” KRC said, adding that the adjustment will apply to the total invoice value during the period in which the fuel price is in effect.

It means anyone moving goods by land, rail or air will face higher charges.

Regional impactKenya has the highest diesel prices in the region at $1.52 per litre, compared with Uganda at $1.39 and Rwanda at $1.50 as of mid-April.

The three countries are linked by the Northern Corridor, the main trade artery from the Port of Mombasa to inland markets. The route carries cargo to Uganda, Rwanda, South Sudan, Burundi and eastern Democratic Republic of Congo. The port also serves Tanzania, Somalia and Ethiopia.

The Northern Corridor road network covers 12,707 km (1,323.6 km in Kenya; 2,072 km in Uganda; 1,039.4 km in Rwanda; 567 km in Burundi; 4,162 km in the Democratic Republic of Congo; and 3,543 km in South Sudan).

Shippers Council of Eastern Africa (SCEA) chief executive Agayo Ogambi warned that the ultimate impact will be higher consumer prices across the region.

Currently, the most expensive cargo route is Kampala–Mombasa at $2.5 per tonne, followed by Mombasa–Kampala at $2.17, Dar es Salaam–Kampala at $1.17, and Bujumbura–Dar es Salaam at $1.02 per tonne. The least expensive routes include Dar es Salaam–Bujumbura at $0.02 per tonne, Dar es Salaam–Kigali at $0.17 and Nairobi–Dodoma at $0.10 per tonne.

Fuel already accounts for about 55 percent of operating costs in road freight, according to the Kenya Transporters Association (KTA).

On Wednesday, KTA announced a 14 percent increase in transport rates after Epra raised diesel prices on Tuesday night by $0.30 per litre, from $1.25 – an increase of about 24.5 percent. Epra later reduced this by $0.076 on Wednesday night.

The 14 percent increase will affect goods moved from the Port of Mombasa and other manufacturing centres, adding to the cost of goods across the region.

KTA chairman Newton Wang’oo issued a notice advising members to inform customers and contractual partners promptly of the basis for the adjustments to ensure continuity of service.

KTA, which controls more than 6,000 cargo trucks, said its members will not absorb the higher costs and must therefore pass them on to consumers.“Members are reminded that fuel constitutes the single largest cost component in road freight transport, accounting for approximately 55 percent of total operating costs. This translates to an estimated 13–14 percent increase in overall transport operating costs,” said Mr Wang’oo.

He added: “Members are advised that such a substantial rise in input costs cannot be absorbed substantially. It is therefore necessary for all members to immediately review their cost structures and adjust transport rates accordingly to reflect the new cost realities.”Cost pressuresFuel price increases are expected to raise transport costs, fuel inflation, and push up food and manufacturing prices, while eroding consumer purchasing power and worsening regional economic stability.

Under KRC’s new tariff structure, moving a 20-foot container from Mombasa to Nairobi has increased from $500 to $550, while rates for 40-foot and refrigerated cargo remain unchanged.

Ferrying cargo on the SGR from Mombasa to Naivasha has dropped by $50 to $600, while a fully loaded 40-foot container will cost $700, down from $1,015.

KRC is offering a free storage period of 14 days after stripping loose cargo. Thereafter, storage charges will be $0.50 per tonne per cubic metre per week (exclusive of VAT), whichever is higher. Additional charges include container handling fees of $25 for a 20-foot container and $30 for a 40-foot container, and deconsolidation fees of $80 and $150 respectively.

Last month, following the US-Israel war with Iran, major global shipping firms including MSC, Maersk, CMA CGM and Hapag-Lloyd invoked the “Liberties clause” to reroute cargo and discharge it at alternative ports.

The clause, rooted in maritime law and formalised under The Hague Rules, allows carriers to alter routes or terminate voyages where the original passage becomes unsafe.

However, it does not guarantee delivery at the intended destination, increasing delays and costs for shippers.

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