By Miraj Guo and Collins Masai | May 22, 2026
President William Ruto has announced a further cut of Ksh 10 per litre in diesel prices starting the June–July fuel pricing cycle, as the government seeks to cushion Kenyans from the impact of rising fuel costs.
Speaking during a live press address from State House in Mombasa on Friday, the President said the decision follows consultations with leaders in the transport sector and is aimed at stabilizing pump prices and easing pressure on consumers facing a high cost of living.
The President defended the government’s fuel stabilization measures, noting that the State had spent Ksh 28.19 billion across the April/May and May/June 2026 pricing cycles to support consumers through direct subsidies and tax relief interventions.
Ruto also revealed that the government reduced Value Added Tax (VAT) on petroleum products from 16 per cent to 8 per cent, foregoing approximately Ksh 14.4 billion in tax revenue in order to ease the financial burden on households and businesses.
According to the President, without these interventions, diesel prices would currently retail at Ksh 277.75 per litre instead of the current Ksh 232.86.
He further defended the government-to-government (G2G) fuel import framework, saying it has helped guarantee stable fuel supplies and protected the Kenya shilling from additional pressure during the ongoing global crisis.
“Through the government-to-government (G2G) fuel supply framework, we have secured guaranteed fuel supplies despite global supply chain disruptions, ensuring uninterrupted availability across the country. The arrangement has stabilized fuel pricing compared to the old spot market system, where prices fluctuated sharply every month,” he said.
“Before the G2G arrangement was introduced in 2023, oil importers faced intense pressure to secure US dollars within short timelines, driving rapid depreciation of the Kenya shilling and threatening fuel supply stability. By easing pressure on foreign exchange demand and ensuring predictable supply terms, the framework has protected the economy during the crisis. Without it, the country’s situation would be much worse.”
The Energy and Petroleum Regulatory Authority (EPRA) earlier this week lowered the pump price of diesel by Ksh 10.06 per litre while raising kerosene by Ksh 38.60 in a mid-cycle review announced after a day of protests and a transport shutdown by PSV operators over high fuel costs.
EPRA said it recalculated the maximum pump prices to be in force from May 19, 2026 to June 14, 2026 following a petition by public transport operators, citing the need to minimise the risk of fuel adulteration arising from the price difference between diesel and kerosene.
Under the new prices, Super Petrol, Diesel and Kerosene now retail at Ksh 214.25, Ksh 232.86 and Ksh 191.38 per litre, respectively.
The move came days after matatu operators and other transport stakeholders called a nationwide strike, disrupting movement in several towns as they demanded tax cuts and other interventions to lower pump prices.
