Kenya Railways has increased freight charges by 12 percent following higher fuel prices.

The corporation in April introduced a new freight pricing formula tied to monthly fuel price adjustments published for Nairobi.

On May 14, the Energy and Petroleum Regulatory Authority (Epra) announced higher fuel prices, with diesel in Nairobi rising to a record $1.88 (Ksh246) a litre and petrol to $1.64 (Ksh214). Kenya Railways runs its trains on diesel.

Diesel has since been revised down to Ksh232.86 ($1.80) a litre following nationwide protests by transporters and commuters.

A recent disclosure by Kenya Railways Corporation (KRC) shows it requires 38 million litres of automotive diesel annually to run locomotives on the standard gauge railway.

Transporters relying on rail freight will now face higher costs.

Fuel formulaOn April 1, KRC introduced a base freight tariff benchmarked to a fuel price of $1.30 (Ksh170) per litre in Nairobi, meaning charges now move with prevailing petroleum prices.

Under KRC’s price adjustment index, transporters now face a 12 percent freight increase, with rates rising to between $1.69 and $1.76 (Ksh221-Ksh230).

The new KRC tariff book states: “There shall be a fuel price adjustor to the prevailing rates at every Epra review. Should the prevailing market price of fuel (the ‘Fuel Price’) exceed or fall below the range, the contract price shall be adjusted in increments of four percent for every $0.076 (Ksh10) variance.”There will be no adjustment to the base tariff if fuel prices remain within the range of $1.22-$1.37 (Ksh160-Ksh180) per litre.

If fuel prices fall to between $0.84 and $0.91 (Ksh110-Ksh119) a litre, the base tariff will be reduced by 12 percent.

Cost pressureSeparately, transporters are planning a 14 percent increase in haulage charges following the latest fuel price review. Last month, the Kenya Transporters Association increased the cost of moving a 20-foot container from Mombasa to Nairobi from $881.52 (Ksh115,000) to $996.50 (Ksh130,000). The cost of transporting a 40-foot container rose to $1,088 (Ksh142,000), an increase of $176.30 (Ksh23,000).

The revised KRC tariff schedule is the first since the repeal of the Kenya Railways Corporation Act (Cap. 397) and the commencement of the Government Owned Enterprises (GOE) Act 2025.

The GOE Act grants State agencies commercial autonomy to determine, approve and levy tariffs, rates, charges and fees for services rendered, subject to applicable laws, shareholder directives and approved governance frameworks.

Under the new tariff structure, a 20-foot container moved from Mombasa to Nairobi will cost Ksh71,627 ($550), up from Ksh65,115 ($500). Rates for 40-foot containers and refrigerated cargo remain unchanged.

Ancillary feesKRC is offering free storage for 14 days after stripping loose cargo. Thereafter, storage charges will be Ksh65 ($0.50) per tonne per cubic metre per week, exclusive of VAT.

Container storage charges have been set at Ksh5,209 ($40) per day for a 20-foot container and Ksh7,813 ($60) for a 40-foot container after the free period.

Shippers will also pay handling charges of Ksh3,255 ($25) for a 20-foot container and Ksh3,906 ($30) for a 40-foot container. Deconsolidation charges are Ksh10,418 ($80) for a 20-foot container and Ksh19,534 ($150) for a 40-foot container.

© Copyright 2026 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).