KISII, Kenya — President William Ruto has announced a Sh6.5 billion fuel subsidy and tax adjustments to cushion Kenyans from rising pump prices triggered by global oil market volatility.
Speaking on Wednesday during the groundbreaking of the Mochengo–Ayora–Maroo Road in Kisii County, Ruto acknowledged mounting economic pressures, particularly from escalating fuel costs driven by supply disruptions in the Middle East.
“There are many challenges facing the country right now, including fuel prices,” the President said, adding that the government is implementing targeted measures to stabilise the energy sector.
Ruto cited the government-to-government (G-to-G) fuel import arrangement as a key intervention that has helped maintain a steady supply and shield Kenya from severe global shocks.
“We adopted the G-to-G arrangement, which helped stabilise our country at a time when many others were going through very difficult circumstances,” he said.
The President maintained that despite rising global prices, Kenya remains relatively insulated due to policy interventions, including subsidies and tax adjustments.
“We have allocated Sh6.5 billion for fuel subsidy and reduced VAT to moderate prices,” he said.
According to the Energy and Petroleum Regulatory Authority (EPRA), fuel prices for the April–May 2026 cycle have increased sharply, reflecting higher landed costs of petroleum products.
In Nairobi, Super Petrol, Diesel, and Kerosene now retail at Sh206.97, Sh206.84, and Sh152.78 per litre respectively, effective April 15 for the next 30 days. The regulator reported increases of Sh28.69 per litre for petrol and Sh40.30 per litre for diesel, while kerosene prices remained unchanged.
EPRA further announced a reduction in Value Added Tax (VAT) on petroleum products from 16pc to 13pc, aimed at cushioning consumers from escalating international prices.
Ruto attributed the global surge to ongoing geopolitical tensions and disruptions in key supply routes, noting that Kenya has taken steps to mitigate the impact.
“Prices have gone up globally, but we have put in place measures to ensure they do not rise too high locally,” he said.
The President also reassured Kenyans of adequate fuel availability, contrasting the country’s position with regional markets facing shortages.
“As we speak, some countries do not have fuel at their pumps, but here in Kenya we have enough,” he said, adding that the G-to-G model has enhanced Kenya’s competitiveness in ensuring consistent supply.
The developments come amid broader concerns about inflationary pressures, as fuel costs directly influence transport, food prices, and the overall cost of living.
The government’s intervention reflects its balancing act between cushioning consumers and maintaining fiscal discipline, as Kenya navigates a volatile global energy environment.
Ruto reiterated that the state remains committed to ensuring affordability and stability in the energy sector, signalling continued policy responses if global conditions persist.
“I want to assure Kenyans that the government will do everything possible to contain fuel prices,” he said.
