Fuel crisis: Everything Gov’t says it has done to cushion Kenyans so far

President William Ruto now says the government has spent more than Ksh.28 billion in fuel stabilisation measures and tax relief interventions in an effort to cushion Kenyans from the effects of the ongoing global fuel crisis.

In a national address delivered from State House, Mombasa, on Friday following talks with transport sector stakeholders, the President defended his administration’s handling of soaring fuel prices, insisting that the crisis was global in nature and beyond Kenya’s control.

Ruto attributed the crisis to disruptions in the Strait of Hormuz following the escalation of conflict involving Iran in February this year, saying the shock had triggered steep increases in global fuel prices.

“Within just weeks, global fuel prices rose sharply, with prices increasing by 54.4 per cent for Super Petrol, 118.5 per cent for Diesel, and 126.4 per cent for Kerosene,” said the President.

The Head of State noted that because Kenya imports nearly all its fuel from the Gulf region, the country inevitably felt the impact of the global supply shock.

Ruto however maintained that the government had moved aggressively to shield consumers from the full impact of the crisis through a series of interventions.

“The government of Kenya has not stood by. We have undertaken several consequential interventions,” he said.

According to the President, the government used the Petroleum Development Fund to stabilize prices during the April-May and May-June 2026 pricing cycles, spending Ksh.13.74 billion directly on fuel subsidies.

He further revealed that the government, in collaboration with Parliament, reduced Value Added Tax (VAT) on petroleum products from 16 per cent to 8 per cent, sacrificing Ksh.14.43 billion in tax revenue to ease pressure on households and businesses.

“In the April-May 2026 pricing cycle, the government utilised Ksh.6.04 billion in fuel stabilisation and also forewent Ksh.6.41 billion in VAT revenue,” Ruto stated.

The President said the interventions led to reductions of Ksh.19.67 per litre for Super Petrol, Ksh.40.25 per litre for Diesel and Ksh.115.03 per litre for Kerosene during the April-May cycle.

For the current May-June cycle, Ruto said the government spent another Ksh.15.72 billion on stabilisation measures and VAT relief.

“As a result, Super Petrol prices were reduced by Ksh.15.87 per litre, Diesel by Ksh.44.89 per litre, and Kerosene by Ksh.78.62 per litre,” he said.

Ruto argued that without the government interventions, pump prices would have been significantly higher.

“Without government intervention during this cycle, Super Petrol would today have retailed at Ksh.230.12 per litre instead of Ksh.214.25; Diesel would have retailed at Ksh.277.75 instead of Ksh.232.86,” he said.

The President disclosed that the total amount committed by the government across the two pricing cycles now stands at Ksh.28.19 billion.

“These interventions have protected millions of Kenyans from even more severe economic hardship,” he added.

Ruto also announced a further Ksh.10 reduction in diesel prices beginning the June-July pricing cycle to provide additional relief to consumers and stabilize transport costs.

The President also defended the government-to-government fuel importation framework, saying it had guaranteed uninterrupted fuel supply and helped stabilize the Kenya shilling by easing pressure on foreign exchange demand.

“Without it, the country’s situation would be far worse today,” said Ruto.