Nairobi — President William Ruto has defended the government's fuel pricing strategy, saying recent interventions are designed to shield Kenyans from rising living costs.
Speaking during a tour of Kisii, the President said the government-to-government (G2G) fuel import arrangement has helped position Kenya as a more competitive fuel market within the region.
"As I speak, some countries don't even have fuel, but here in Kenya, we have enough. We have put in place a subsidy to ensure that high costs do not reach the common citizen. We are going to make sure that we cushion Kenyans from high fuel prices," he stated.
He noted that the administration will continue closely monitoring global and domestic fuel trends to ensure stability in the economy and to protect key sectors such as transport, which remain heavily dependent on fuel prices.
Keep up with the latest headlines on WhatsApp | LinkedIn
Ruto added that the G2G framework has played a key role in improving fuel supply stability and reducing market manipulation risks, even as global oil prices continue to fluctuate.
The President reaffirmed that the government remains committed to cushioning citizens and ensuring that essential commodities remain as affordable as possible despite external economic pressures.
On Tuesday, the government has reduced Value Added Tax (VAT) on petroleum products from 16 percent to 13 percent and committed Sh6.2 billion from the Petroleum Development Levy (PDL) Fund in a bid to shield consumers from rising global fuel costs.
In a statement, the Energy and Petroleum Regulatory Authority (EPRA) said the tax relief applies to Super Petrol, Diesel and Kerosene, forming part of broader measures to stabilise pump prices amid sharp increases in international oil markets.
The regulator added that the government will further absorb part of the cost pressures by utilising approximately Sh6.2 billion from the PDL Fund to stabilise prices during the current review period running from April 15 to May 14, 2026.
Despite the intervention, EPRA acknowledged that global price shocks continue to exert pressure on local pump prices.
The average landed cost of imported Super Petrol rose by over 41 percent between February and March 2026, while Diesel increased by nearly 59 percent.
Kerosene recorded the steepest jump, rising by more than 100 percent over the same period.
Kenya relies entirely on imported refined petroleum products, with prices determined by international benchmarks and fluctuations in the exchange rate against the US dollar.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
