Nairobi — President William Ruto on Friday promised a further Sh10 reduction in diesel prices in the upcoming June-July pricing cycle after meeting players in the public transport sector in Mombasa, as the government moved to calm growing public anger over soaring fuel costs.
Speaking at State House Mombasa following consultations with matatu operators, logistics players and other transport stakeholders, Ruto said the intervention was aimed at easing pressure on transport costs and stabilising pump prices amid what he described as a global fuel crisis triggered by instability in the Middle East.
The President defended his administration's handling of the crisis, insisting Kenya was suffering the effects of a global oil supply shock linked to escalating conflict involving Iran and disruptions along the Strait of Hormuz, a key global oil route.
"Over the past few weeks, many families, businesses, farmers and transport operators have felt the pain of rising fuel prices," Ruto said, adding that the government had already spent billions to cushion consumers from the sharp increases.
Follow us on WhatsApp | LinkedIn for the latest headlines
According to the President, the government utilised Sh13.74 billion through the Petroleum Development Fund over the last two pricing cycles and also reduced VAT on petroleum products from 16 per cent to 8 per cent, sacrificing Sh14.43 billion in tax revenue.
Ruto said the interventions had already lowered diesel prices by Sh40.25 per litre during the April-May cycle and by a further Sh44.89 per litre in the current May-June cycle.
Tax relief
Without the subsidies and tax relief, he said diesel would currently retail at Sh277.75 per litre instead of the present Sh232.86.
The President also used the address to defend the controversial government-to-government fuel import arrangement, arguing it had shielded Kenya from worse economic fallout by guaranteeing uninterrupted fuel supply and easing pressure on the shilling.
"There are those trying to turn this global crisis into politics," Ruto said, dismissing calls for the immediate removal of all fuel taxes and levies as unrealistic because they would cripple funding for public services, roads, schools and hospitals.
Leaders from the public transport sector who flanked the President welcomed the concessions and officially called off the nationwide strike that had paralysed transport services in several towns.
A representative of the Matatu Owners Association apologised for the disruption caused during the industrial action, saying criminal elements and political actors had infiltrated demonstrations, leading to vandalism and destruction of vehicles and schools.
"We would like to first start by apologizing to the country for the time that we went on strike," the official said.
"We realized goons infiltrated and maybe political interests came in and people lost their vehicles, schools were vandalized and other institutions. That was not us."
The association praised the government for agreeing to review insurance policies and auctioneering laws, saying operators had suffered immense losses and financial pressure for years.
The PSV operators further said discussions with the government had resolved long-standing issues affecting 14-seater matatus in Nairobi and Mombasa and promised to continue engaging Transport Cabinet Secretary officials on pending matters affecting the sector.
Strike called off
Matatu Owners Association of Kenya President Albert Karakacha praised Nairobi Governor Johnson Sakaja for supporting negotiations, saying counties had lost significant revenue during the strike.
"We want peace in this country and we want to be united so that we can move forward," Karakacha said. "Politics will come in 2027. Let's build our country."
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
"We are saying that the strike that we had suspended has been called off fully," he added.
The meeting with transport stakeholders also yielded a raft of promises targeting PSV and transport operators, including talks with banks on temporary loan relief measures, a review of insurance and auctioneers laws, and plans to regulate minimum fares for digital taxi platforms.
Ruto further directed the National Transport and Safety Authority to support matatu culture by allowing continued use of graffiti and artwork on public service vehicles "in a manner that upholds safety and respect for other road users."
The President maintained there was no fuel shortage in the country and urged Kenyans to remain calm and reject violence and misinformation as the government continued efforts to cushion households and businesses from the crisis.
