President William Ruto on Friday announced a further cut of KSh10 per litre on diesel prices, offering fresh relief to motorists and public transport operators after days of protests over soaring fuel costs.
Speaking from State House in Mombasa during a live national address, Mr Ruto said the reduction would take effect in the June/July fuel pricing cycle following consultations with leaders in the transport sector.
“I have directed that in the next pricing cycle, we are going to further reduce the price of diesel by another KSh10,” the President said. “This is intended to stabilise pump prices and provide additional relief to consumers.”
The announcement came at a tense moment for the government. Earlier this week, matatu operators staged a nationwide strike that disrupted transport in Nairobi and several major towns. The action followed sharp increases in fuel prices that have pushed up fares and intensified pressure on households already struggling with the rising cost of living.
The Energy and Petroleum Regulatory Authority (EPRA) had already reduced diesel prices by KSh10.06 per litre in an emergency mid-cycle review announced on Monday. At the same time, kerosene prices rose sharply by KSh38.60 per litre, drawing criticism from low-income households that rely on it for cooking and lighting.
Under the current pricing structure, super petrol is retailing at KSh214.25 per litre in Nairobi, diesel at KSh232.86 and kerosene at KSh191.38.
Ruto blamed the latest fuel crisis on turmoil in global energy markets linked to tensions involving Iran and disruptions along the Strait of Hormuz, one of the world’s busiest oil shipping routes.
“The international market has experienced unprecedented shocks,” he said, adding that diesel prices globally had risen by more than 100 per cent since late February.Kenya imports all of its petroleum products, largely from Gulf producers, leaving the country exposed to swings in global oil prices and shipping costs.
The President defended the government’s intervention measures, saying the State had spent KSh28.19 billion over the past two fuel pricing cycles to cushion consumers through subsidies and tax relief.He also pointed to the reduction of Value Added Tax on petroleum products from 16 per cent to 8 per cent, a move he said had cost the Treasury KSh14.4 billion in forgone revenue.
According to the government, diesel prices would now be approaching KSh278 per litre without those interventions. Ruto also mounted a strong defence of the government-to-government fuel import arrangement introduced in 2023. The system, which allows Kenya to source fuel through long-term agreements with Gulf suppliers, has faced criticism from opposition politicians and some economists who argue that it lacks transparency.
But the President said the arrangement had protected the Kenya shilling from further depreciation and ensured a steady supply of fuel despite turbulence in global markets.“Without this framework, the pressure on foreign exchange markets would have been much worse,” he said. “We would likely be facing more severe supply shortages and even higher pump prices.”
Transport operators welcomed Friday’s announcement, with several leaders signalling they would suspend plans for further industrial action.Still, some economists warn that the government may struggle to sustain costly fuel subsidies if global crude prices remain elevated for an extended period.
For many Kenyans, however, the immediate concern is simpler: whether the promised reduction will finally ease the daily burden of transport and food costs that continue to climb across the country.
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