The government is taking decisive measures to cushion Kenyans from high fuel prices caused by the conflict in the Middle East, President William Ruto has said.
Speaking after a consultative meeting with transport stakeholders at State House Mombasa on Friday, the President directed that diesel prices be reduced by KSh10 in the June-July pricing cycle.
He explained that the Government has been using the Petroleum Development Fund and the 50 per cent reduction of Value Added Tax (VAT) – from 16 to 8 per cent – to stabilise fuel prices.
In the April-May and May-June 2026 pricing cycles, President Ruto pointed out, the Government has committed KSh28.19 billion in fuel price support through stabilisation measures and tax relief interventions to cushion Kenyans.
During the May-June 2026 pricing cycle alone, he said, the Government utilised KSh7.7 billion to stabilise prices and also had to forego KSh8 billion in VAT revenue, bringing the total support to KSh15.7 billion.
As a result, the President noted that Super Petrol prices reduced by KSh15.87 a litre, diesel by KSh44.89, and kerosene KSh78.62.
He pointed out that without the Government intervention, Super Petrol would today be retailing at KSh230.12 a litre instead of the current KSh214.25, diesel at KSh277.75 instead of KSh232.86, and kerosene at KSh270 instead of KSh191.38.
“These interventions have protected millions of Kenyans from even more severe economic hardship,” he said.
He told Kenyans that the Government fully understands the burden rising fuel prices have placed on families, businesses, farmers, and transport operators across the country.
The President noted that global fuel prices have risen sharply within weeks, with Super Petrol increasing by 54.4 per cent, diesel by 118.5 per cent, and kerosene by 126.4 per cent.
“These increases directly affected the landed cost of fuel imported into Kenya and ultimately impacted pump prices across the country,” he said.
He told Kenyans that no country can completely escape a global oil shock of this magnitude, noting that even advanced economies are facing similar challenges.
The President said the Government has also ensured stable and uninterrupted fuel supply under the Government-to-Government fuel framework.
“This arrangement has also stabilised fuel pricing compared to the old spot-market system, where prices fluctuated sharply every month,” he said.
On those calling for the scrapping of all taxes and levies on fuel, President Ruto warned that doing so would immediately affect the delivery of public services.
“Do we go back to the spectacle of stalled road projects that had become a hallmark across the country?” he asked.
He reminded those suggesting the removal of all taxes that leadership requires responsible decisions that protect both current needs and the country’s long-term economic stability.
The President said the Government is engaging stakeholders in the transport, agriculture, and business sectors to develop practical interventions aimed at reducing pressure on livelihoods and economic activity.
He said the East African Partner States and the private sector are working towards establishing a regional refinery to strengthen energy security, while Kenya is developing oil resources in Turkana County.
President Ruto said the global fuel crisis is a reminder that Kenya must reduce its vulnerability to external oil shocks.
He therefore pointed out that the Government is accelerating investments in renewable energy, electric mobility, modern public transport, and energy infrastructure to reduce dependence on fossil fuels.
The President announced that the Government is in the process of buying 3,000 electric vehicles through the Ministry of Interior for use by security and administration officers.
“I am also making a declaration that the first 100,000 electric vehicles to be imported to Kenya, whether for public service or private use, will be duty-free,” he said.
Following consultations with transport stakeholders, the Government also announced several measures to support the sector.
The President said the Ministry of Transport will engage financial institutions and explore temporary relief measures for transport operators facing financial challenges.
Additionally, the ministry will work with the Insurance Regulatory Authority to address concerns relating to insurance claims affecting public transport operators.
The President further directed that the Insurance Act and the Auctioneers Act be reviewed within the next three months to create a fairer framework for sector players.
He also said the Ministry of Transport, through the National Transport and Safety Authority (NTSA), will convene a meeting between digital taxi platforms and drivers to address disputes in the ride-hailing sector, including the introduction of minimum fare regulations.
The President further directed NTSA to support matatu operators in continuing to use artwork and graffiti on their vehicles while maintaining safety standards.
“The Government will continue engaging stakeholders across the transport sector to develop practical and sustainable solutions that protect livelihoods and support economic activity,” he said.
President Ruto called on Kenyans to remain calm, patient, and united as the country navigates the global fuel crisis.
He urged Kenyans not to allow political opportunists to exploit the crisis for selfish gain, saying the country would overcome the challenge through unity.
“While every citizen has a right to express their concerns, collectively we must reject hooliganism and all forms of violence that lead to loss of lives, disrupt livelihoods and undermine our economy,” he said.
