Dozens of boda boda drivers and riders are steadily crossing into Tanzania at the border town of Namanga in Kenya’s Kajiado County in order to purchase cheaper gasoline.
On July 1, Kenya enacted the Finance Act of 2023, which raised the VAT on gasoline, diesel, and kerosene from 8% to 16%.
As a result of the increase in fuel prices, some Kenyans are crossing the border in search of cheaper gasoline. According to data from GlobalPetrolPrices.com, Tanzania has the lowest gasoline prices in the region, with a liter costing Ksh158.28, compared to Kenya’s highest price of Ksh197.75.
After the Democratic Republic of the Congo Ksh174.12, Burundi has the second-lowest price at Ksh162.10. Rwanda offers gasoline for Ksh183.46, whereas Uganda sells it for Ksh181.76.
Tanzania charges Ksh147.11 for a liter of diesel, whereas Kenya has the highest price in the region at Ksh182.05. According to this, drivers of cars and boda boda users from Kenya may save Ksh34.94 by filling up in Tanzania.
Read Also: Effects of the 16% VAT Fuel on Kenyan Households
Following Burundi, which has the second-cheapest fuel in the region with a liter costing Ksh170.73, is Uganda. The costs are Ksh173.56 and Ksh180.49 in the Democratic Republic of the Congo and Rwanda, respectively.
Nairobi, including Kajiado County, charges Ksh195.5 a liter for fuel, while the current exchange rate of Tsh17.3 to one Kenyan shilling makes Tanzanian shillings worth Tsh2,781 (Ksh160.75).
In Tanzania, a liter of gasoline costs Ksh34.75 cheaper as a result. Kenyan drivers may now purchase diesel for Ksh162.77, as opposed to Ksh179.60 in the Nairobi.
A spot check by the country revealed that the majority of the automobiles, trucks, and motorcycles refueling at the Admire gas station, which is a mile from the border, were from Kenya.
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At the station, kerosene was running low. In contrast to Kenya, where pump prices have increased, Tanzania’s fuel costs have been falling over the past two months.
