Nairobi — The government and transport sector stakeholders have agreed to suspend the nationwide fuel strike for one week following high-level negotiations aimed at easing tensions over soaring diesel prices that had paralysed public transport across the country.
The breakthrough, announced Tuesday after hours of consultations between government officials and leaders of the transport sector, comes a day after chaotic scenes at Nairobi's Transcom House where matatu operators publicly rejected claims that a deal had already been reached.
Following the breakthrough, Sakaja appealed to financial institutions to grant temporary amnesty and flexibility to investors in the public transport sector, saying many operators were struggling under mounting economic pressure.
Speaking after the negotiations, the Governor said the disruption had caused widespread suffering across the country, affecting families, businesses and essential services.
Keep up with the latest headlines on WhatsApp | LinkedIn
"We know people are suffering. Children have not gone to school, farm produce is stuck, the sick are stranded and businesses have been closed. I want to assure you that we have found a way forward after deliberations," he said.
Sakaja urged lenders not to intensify pressure on operators through aggressive loan recovery measures, arguing that the prevailing economic conditions require understanding and support.
"To financial institutions, we are in very extraordinary times. The crisis is global; let's not take it out on our people. People are struggling, let's not auction them. Let's go back to work as we negotiate so that we get a solution and address the issues at hand, as their guarantor in this negotiation," he added.
His appeal comes amid growing concern over the rising cost of operations in the transport sector, with matatu operators grappling with increased fuel prices and financial strain.
Interior Cabinet Secretary Kipchumba Murkomen said the suspension would allow further negotiations on fuel pricing and broader concerns affecting the public transport sector.
"The government is also fully cognizant of its responsibility to protect Kenyans from the high cost of living," Murkomen said.
He noted that the government had already reduced VAT on petroleum products by eight percent and used the Petroleum Development Levy to stabilise fuel prices.
"Despite these interventions, the prices still remain high. Consequently, the government last night took additional measures to remedy the situation by reducing the price of diesel by Sh10 per litre," he said.
Murkomen added that after Tuesday morning's consultations, both parties agreed to suspend the strike until May 26 to allow fresh talks.
"That in the interceding period between now and Tuesday 26th May 2026, the strike that is ongoing is suspended for a period of one week to provide an avenue for peaceful negotiations," he said.
The strike, organised by the Transport Sector Alliance, had crippled public transport services in major towns including Nairobi, Nakuru and Mombasa, leaving thousands of commuters stranded as operators protested sharp increases in fuel prices.
Stakeholders confirmed they had agreed to temporarily call off the industrial action, although they maintained that their core demands had not yet been met.
A representative of the alliance said operators were giving dialogue a chance despite dissatisfaction with the current diesel price reduction.
"We have just had a breakthrough, not because we are satisfied but because we want to give negotiations a chance," the official said.
"If this is not taken seriously within the seven days we have given, the strike will be back."
Federation of Public Transport Sector CEO Kushian Muchiri urged drivers and conductors to resume operations while talks continue under the Federation of Public Transport Sector.
"Today, as much as we would have been happy to say that we got the Sh46 that we were seeking, we are also glad that at least negotiations have started in earnest," Muchiri said.
He added that operators expected meaningful engagement from government going forward.
Matatu Owners Association President Albert Karagacha directed operators to resume work, saying a joint committee would be formed to address broader challenges facing the PSV sector.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
The Matatu Owners Association said the committee would review issues including insurance costs, traffic enforcement and corruption within the sector.
Energy Cabinet Secretary Opiyo Wandayi described the agreement as a major breakthrough and defended government efforts to cushion Kenyans from rising fuel costs driven by global market pressures.
"Let me start by confirming that indeed we have got the white smoke," Wandayi said.
The agreement followed negotiations involving Transport CS Davis Chirchir, Energy CS Wandayi, security officials and representatives from the public transport sector, with Nairobi Governor Johnson Sakaja acting as guarantor in the talks.
The strike had been triggered by concerns over soaring fuel costs and allegations of fuel adulteration linked to the widening price gap between diesel and kerosene.
Stakeholders have now agreed to continue engagements with the government as efforts continue to address the broader issues affecting the sector.
