They now say that the sustained climb in the retail pump prices, posed a threat to economic growth and would have adverse effects especially on the vulnerable groups in the society mainly the poor.
 
The high prices are now being blamed for the rise in prices of essential commodities including food a situation that is worsened by the fact the country is only now emerging form January post poll, violence.
 
While Kenya operates in a free market  economic and business environment, many now say that unregulated nature of the oil market made multinationals in the country adopt cartel-like behaviour making them hike prices even when thee were no reason for it.
 
While international prices of crude have been on the rise experts here say that the steady strengthening of the Kenya shilling against the dollar and other hand currencies should at least mitigate against the rise, had the oil marketers been ethical.
 
“ The prices have climbed by 40% since September last year something that cannot be adequately justified even  though  the trend that is being witnessed worldwide” Said George Kamau an oil dealer.
 
 
“ The fact oil producing countries are cutting production volumes so as to boost prices does not justify the trend being witnessed  in Kenya where a litre is retailing at $1.5 ,he added.
 
 
Resulting from the endless upward spiral, public transporters are threatening to hike fares across the country a move when implemented will hit hard on workers who commute to work daily and who are already grappling with high food prices.
 
“ The outlook is gloomy for the low income earner who is feeling the  effects of a double digit inflation of 24% and the rise in prices of basic consumer goods” said Kariuki Mithamo a human rights worker.
 
It is not only the transporters who are charging more for their services, manufacturers have already quietly hiked prices of their products  citing high costs of production attributed to oil prices.
 
The trend in the oils sector, rise in food prices, poor rains already being experienced across the country and effects of January violence are now forcing experts across the board to scale down Kenya’s economic growth prospects for this year. 
 
From a projected high of around 8% , it now unanimous that the economy will only mange a meager 4-5%, hardly enough to lift up the spirits of Kenyans who had expected good tidings this year.
 
Pump prices are this month expected to hit Ksh 100 per litre mark, the highest ever up from ksh 65 in mid 2007.
 
It is now feared that this trend coupled with ever cited high energy costs will slow down he manufacturing sector in particular a gloom prospect for country desperate to attract foreign investment and attract jobs.
 
It is against this background that call are increasing to the ministry of energy to  step in and halt the rise to save the economy which some say is now at mercy of  a handful multinationals in the oil sector.
 
Last year parliament enacted the energy regulation act which gives the energy minister powers to intervene and curtail rise in oil prices where he feels that the same were  being manipulated , by markers.
 
The act allows the minister  to step in and set a riser price above which the prices cannot exceed.
 
These powers however remain just in books as the government has yet to use , fearing that such a populist move would portray the country as a bad place for doing business.
 
Last year energy minister Kiraitu Murungi made it clear the he intended to us the powers only sparingly, saying that his ministry was not for undue meddling in the operations of the oil companies.
 
Oil firms here have blamed government taxation for the high prices saying that 40% of the pump price went to the government in form of taxes.

Keywords:  kenya business energy