Kenyan motorists crossing Tanzanian border in search of cheaper fuel

Nairobi. Dozens of motorists and boda boda riders in the border town of Namanga, Kajiado County, Kenya are increasingly crossing into Tanzania in search of cheaper fuel.

On July 1, Kenya's Energy and Petroleum Regulatory Authority (EPRA) increased fuel prices in line with the Finance Act, 2023, which revised the VAT on premium, diesel and kerosene from 8 per cent to 16 per cent.

Motorists and boda boda riders are now crossing into Tanzania at the Namanga border, next to the One Stop Border Point (OSBP), to get cheaper fuel.

In Nairobi, including Kajiado County, a litre of petrol is selling for Ksh195.5 while in Tanzania it is going for Sh2,781 (Ksh160.75) at an exchange rate of Sh17.3 to one Kenya shilling. This means that a litre of petrol costs Ksh34.75 less on the Tanzanian side.

A litre of diesel is selling at Sh2,816 which translates to Ksh162.77 compared to Ksh179.60 in the Nairobi region, saving Kenyan motorists Ksh16.83 per litre.

A Nation spot check on  evening revealed that most of the vehicles and motorcycles refuelling at the Admire filling station, a kilometre from the border, were from Kenya. The station had run out of kerosene.

Skyrocketed

In the past two months, fuel prices in Tanzania have been going down compared to Kenya, where pump prices have skyrocketed.

"We are refuelling in Tanzania nowadays. With the economic hardships in Kenya we have no choice but to go for the cheaper fuel," said Jackson Marashua, a motorist.

Mr Marashua added that those using diesel-powered generators were also forced to source fuel from across the border.

Only motorists with credit facilities are left to fill up at the Kenyan side of the border, and those crossing into Tanzania.

But Mr Joseph Mwangi, a grain trader, told the Nation on Monday that he had been forced to stick to Kenyan stations to fuel his trucks because of the credit facility he had been given over the years.

"My trucks are fuelled on credit and I pay at the end of the month. There are also some fuel products that are not available on the other side. My options are limited. We hope the government will review the prices downwards," he lamented.

The number of transit trailers is said to have reduced significantly in the last two weeks, dealing a blow to the handful of filling stations in Namanga town.

Recently, a number of oil marketers have set up filling stations at the Namanga border.

"Sales have reduced significantly, most of the trucks are refuelling on the other side (Tanzania), they are just in our car parks for the night unlike before when they could refuel," one of the petrol station attendants said.

The effect of high fuel prices in what is arguably the busiest border town has also been felt in food outlets.

Kajiado County has two border posts, Namanga OSBP and Tarakea Border Post at Loitoktok, Kajiado South Sub County.