Kenya is set for some relief at the pump after President William Ruto announced a KSh10 reduction in the price of diesel, a move aimed at cushioning households and transport operators from rising living costs. The announcement was made during a live press briefing at State House in Mombasa on Friday.
The President said the reduction will take effect in the upcoming June–July pricing cycle, following consultations with stakeholders in the transport sector. He noted that the decision is part of wider efforts to stabilise fuel prices at a time when global markets remain highly volatile.
Ruto linked the ongoing pressure on fuel prices to international supply disruptions, warning that Kenya remains exposed due to its reliance on imported fuel.
According to the Head of State, the current fuel price strain is largely driven by global market instability triggered by escalating conflict involving Iran since February 2026. He said the situation has disrupted key oil supply routes, especially through the Strait of Hormuz.
This disruption, he explained, has pushed global diesel prices up sharply, with international rates reportedly rising by as much as 118 per cent. Kenya, which depends entirely on imports from the Gulf region, has not been spared from the shock.
Ruto added that the government has been forced to respond with multiple interventions to shield consumers from even higher retail prices at the pump.
Billions Spent to Stabilise Pump Prices
The President defended the government’s fuel stabilisation programme, saying the State has already spent KSh28.19 billion across the April/May and May/June 2026 pricing cycles. These funds were used to cushion consumers through subsidies and tax relief measures.
He also pointed to tax reforms, including the reduction of Value Added Tax on petroleum products from 16 per cent to 8 per cent. According to him, this decision has led to a revenue sacrifice of about KSh14.4 billion, all aimed at easing pressure on households and businesses.
Without these interventions, Ruto noted that diesel prices would currently be significantly higher, estimated at around KSh277.75 per litre instead of the prevailing KSh232.86.
Ruto also used the briefing to defend the government-to-government (G2G) fuel import arrangement, arguing that it has played a key role in stabilising supply and shielding the economy from foreign exchange pressure.
He said the model has guaranteed consistent fuel availability despite global disruptions and reduced the volatility that previously characterised monthly pricing cycles.
Before the introduction of the system in 2023, importers reportedly faced heavy pressure to source US dollars quickly, a situation that weakened the Kenya shilling and destabilised fuel supply chains. The President said the current framework has helped reduce those risks during the ongoing global crisis.
Earlier in the week, the Energy and Petroleum Regulatory Authority (EPRA) announced a mid-cycle review of pump prices following pressure from transport operators and public protests.
Diesel prices were reduced by KSh10.06 per litre, while kerosene was increased by KSh38.60. Super petrol remained relatively stable in the latest adjustment.
EPRA explained that the review was partly influenced by concerns from transport stakeholders and the need to reduce risks of fuel adulteration caused by the widening price gap between diesel and kerosene.
The revised prices, effective from May 19 to June 14, 2026, now place Super Petrol at KSh214.25, Diesel at KSh232.86, and Kerosene at KSh191.38 per litre.
The announcement follows heightened pressure from matatu operators and transport stakeholders, who recently staged a nationwide shutdown protesting high fuel costs. The disruption affected movement in several towns and intensified calls for government intervention.
The new diesel price reduction is expected to ease pressure on transport costs, though stakeholders continue to push for broader reforms to stabilise fuel prices in the long term.
Kenya’s latest fuel pricing adjustment highlights the delicate balance between global market shocks and local economic pressures. While the government has moved to cushion consumers through subsidies, tax cuts, and policy interventions, fuel costs remain sensitive to international developments.
As the new pricing cycle approaches, attention will now turn to whether the diesel reduction will translate into meaningful relief for transport operators and everyday consumers already grappling with high living costs.
