Across East Africa, fuel is one of the highest operating costs for businesses, often accounting for 60 percent of a fleet’s entire budget.
Fluctuating global fuel prices create constant budgeting uncertainty, forcing companies to either absorb costs, which squeezes profits, or pass them on to customers, which can hurt competitiveness.
Figures from the Energy and Petroleum Regulatory Authority (Epra) show that between 2021 and 2025, fuel prices in Kenya have risen by more than Sh70 due to increases in global landing costs, freight charges, as well as taxes and levies.
Yet, while the fluctuating oil prices contribute largely to the spiralling fuel expenses for businesses, many companies are losing millions for a different reason.
Due to a reliance on manual systems that are easy to manipulate and inefficient, many companies are losing millions through fuel theft and are spending more time on data entry than on key functions.
Think of paper logbooks, endless phone calls to approve fuelling and conducting monthly reconciliations to match receipts that never quite add up; these manual processes lead to losses that quietly drain profits.
According to estimates, businesses lose nearly 30 percent of productivity every year due to disconnected systems and manual data entry.
While businesses cannot control global fuel prices, they can control their fuel management through technology, which offers a more efficient and transparent way to manage expenses.
Research shows that digital tools can help businesses cut fuel costs by roughly 24 percent through route optimisation, real-time driver monitoring, prevention of fuel theft, minimising idle time and reducing maintenance expenses.
This digital approach isn’t a new idea; it’s a globally proven model.
You only need to look at market leaders like Wex and Corpay that have built massive businesses by helping companies simplify their fleet operations. Locally, we have integrated platforms like Pesapal Drive, which leverage technology to facilitate seamless fleet fuel management.
As global fuel prices continue to spiral, such tools can play a major role in enabling businesses to manage their expenses; however, integrating them into company operations introduces obstacles, which must be addressed for successful implementation.
Focusing on communication, resource allocation, and security planning can help to strengthen implementation efforts, helping businesses maximise the benefits of technological advancements.
Continuous digital upskilling can also help to equip organisations with the knowledge and skills required to integrate new technology into their operations effectively.
In addition, creating a culture that sees change as an opportunity rather than a threat by proactively sharing the reasons for the change and the benefits it will bring to organisations could enhance the adoption of emerging technologies.