Experts push fuel-efficiency standards for imported cars as Kenya’s fuel bill climbs

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Industry and policy experts are calling for fuel efficiency standards in Kenya for imported vehicles and machinery, arguing that rising petroleum use is draining foreign exchange and exposing the economy to oil price shocks, The Star reported on October 31, 2026. A panel of experts meeting in Nairobi said the annual fuel import bill could rise from US$783 million (KSh101.8 billion) in 2025 to US$1.3 billion by 2040 without action on vehicle efficiency.

Key numbers

• Kenya’s petroleum consumption rose 8.3% between 2023 and 2025, according to E-Mobility Association president Hezbon Mose.
• Transport accounts for about 75% of petroleum consumption.
• More than 80% of Kenya’s vehicles are imported from Japan, mostly second-hand.
• Kenya had about 33,800 registered electric vehicles at the end of 2025, 95% of them motorcycles.

What fuel efficiency standards in Kenya would do

Standards would set limits on how much fuel imported vehicles may use, or on their carbon emissions per kilometre, so the market shifts towards more efficient cars, hybrids and trucks. Supporters say this would cut the amount of imported fuel needed without forcing motorists to abandon petrol and diesel vehicles straight away. “Fuel is our biggest import and our biggest forex exchange,” Mose said.

GIZ Kenya technical adviser Robert Njoroge said every fuel price spike “goes straight to transport costs” and from there into food, fares and goods. He said standards would also give importers and local assemblers certainty about which vehicles the market will need.

No bill or regulation has been published. The government launched a national e-mobility policy in February 2026, and technical working groups are considering how to implement it.

What it could mean for car buyers

• Older, thirstier models could become harder or costlier to import if standards are combined with tax incentives or penalties.
• Hybrids and small engines would likely benefit. Kenya already taxes vehicles partly by engine size; see our guide to car import duty rates.
• Running costs: a more efficient car saves money every month, which matters more as pump prices stay high.
• Electric options: Kenya’s mostly renewable grid makes electric vehicles attractive, but cost, financing and charging remain barriers. Electric motorcycles have tax relief; read about e-mobility tax relief.

Why it matters for the economy

Fuel is the main commercial source of demand for dollars in Kenya. Higher fuel prices since the February strikes on Iran have pushed up transport costs and inflation, which rose to 7.3% in October. KCB’s treasurer recently named fuel prices as one of the biggest risks to growth into 2027; see our report on KCB’s economic outlook. Cutting fuel demand per vehicle would reduce how much a future oil shock hurts the shilling and households.

How other countries do it

Many countries regulate vehicle efficiency through fuel economy or carbon dioxide limits, labels that show fuel consumption at the point of sale, and taxes that rise with emissions. For a country that imports mainly used vehicles, a common approach is to tie import duty or registration fees to emissions or age, rather than to require new-car standards that manufacturers must meet. Any Kenyan scheme would need to be designed around the used-car trade from Japan, which supplies most vehicles on the road.

FAQ

Does Kenya have fuel efficiency standards for vehicles?

Not yet. Stakeholders are calling for them, but no regulation has been published.

How much does Kenya spend on fuel imports?

About US$783 million (KSh101.8 billion) in 2025, according to the expert panel cited by The Star.

How many electric vehicles are in Kenya?

About 33,800 registered at the end of 2025, 95% of them motorcycles.

Updated October 31, 2026.

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