President Ruto has defended the recent increase in fuel prices, attributing the surge to global market pressures and ongoing instability in the Middle East, while announcing a temporary reduction in fuel VAT to cushion consumers.
Speaking in South Mugirango Constituency in Kisii County during the final leg of his four-day tour of the Gusii region, the President said the government had been forced to intervene to prevent even steeper price increases.
Government Spent KSh 6.5 Billion to Cushion Kenyans
Ruto revealed that the government had spent KSh 6.5 billion to subsidise fuel costs, ensuring prices remain relatively stable compared to other countries facing supply shortages.
“We have had issues of war in the Middle East and the price of fuel is high everywhere, but in Kenya, tumepanga vizuri kuhakikisha kuwa ile bei ambayo ingeruka juu sana, tumeifanyia moderation,” said the President.
He added that the government had taken deliberate steps to soften the impact on consumers.
“Tumetoa pesa ya serikali KSh 6.5 billion kuleta subsidy; we have brought down VAT to ensure we moderate the fuel.”
VAT on Fuel Slashed to 8% for Three Months
In a move aimed at offering temporary relief, Ruto announced that fuel VAT will be reduced from 16 per cent to 8 per cent for the next three months.
“We are going to bring down VAT from 16% to 8% for the next three months until we make sure we make it through this phase,” he stated.
The President expressed optimism that the measure will shield Kenyans from the worst effects of global fuel price volatility.
Kenya Still Stable Despite Global Crisis
Ruto also defended the government-to-government (G2G) fuel importation arrangement, arguing that it has helped maintain a steady supply of petroleum products in the country.
“You cannot compare our fuel with our region or other countries. There are countries which do not have fuel, but we have enough fuel,” he said.
He maintained that the government remains committed to stabilising the economy despite external shocks.
Opposition Threatens Mass Action
At the same time, the Head of State took aim at opposition leaders, accusing them of lacking a clear agenda and engaging in divisive politics.
However, opposition leaders led by Rigathi Gachagua, Kalonzo Musyoka, Fred Matiang’i, Eugene Wamalwa, and Justin Muturi have criticised the administration over the rising fuel costs.
The leaders, speaking during a joint press conference, threatened to call for mass action if the government fails to address the crisis, blaming the hikes on alleged irregularities in petroleum importation under the G2G framework.
EPRA Announces Sharp Fuel Price Increase
The price hike follows the latest review by the Energy and Petroleum Regulatory Authority (EPRA), which saw:
- Super Petrol increase by KSh 28.69 per litre
- Diesel rise by KSh 40.30 per litre
- Kerosene prices remain unchanged
This pushed the maximum retail prices to:
- Super Petrol: KSh 206.87 per litre
- Diesel: KSh 206.84 per litre
- Kerosene: KSh 152.78 per litre
Matatu Fares Rise by 25%
The ripple effects of the fuel hike are already being felt across the transport sector, with matatu operators announcing a 25 per cent increase in fares nationwide.
Albert Karakacha, president of the Matatu Owners Association, confirmed that the fare adjustments have taken effect immediately for both short and long-distance travel.
Economic Pressure Mounts
The latest developments highlight the growing economic pressure on Kenyan households as global fuel prices continue to rise. While the government insists its interventions are cushioning citizens, critics argue that more sustainable solutions are needed to address the recurring fuel crises.
