The government has confirmed it has pumped Sh13.9 billion into fuel subsidies over the last two pricing cycles as it moves to shield consumers from rising global oil prices driven by instability in the Middle East, while also reaching a deal with public transport operators to suspend a nationwide strike and continue talks on fuel pricing.
Energy and Petroleum Cabinet Secretary Opiyo Wandayi said the interventions were part of efforts to stabilise fuel costs in a period of sharp global market pressure, noting that Kenya’s reliance on imported petroleum had left the country exposed to external shocks. He said the latest measures had been taken after sustained pressure from both transport operators and consumers affected by high pump prices.
Announcing the outcome of the talks held with public transport leaders, Wandayi confirmed that a breakthrough had been reached after negotiations that started on Monday and concluded on Tuesday.
“We have got the white smoke,” Wandayi said, confirming that talks between the government and leaders of the public transport sector had ended successfully after negotiations that began on Monday.
He explained that the government had intensified subsidies to cushion consumers, including a major diesel price intervention.
“As a matter of fact, due to the situation that currently obtains in the Middle East, and bearing in mind that Kenya remains a net importer of petroleum products, the government, conscious of the difficulties that the public continues to endure following the skyrocketing of petroleum prices, has taken very, very deep measures,” he said.
Wandayi said Sh2.7 billion was spent in a single move to reduce diesel prices by Sh10 per litre, describing it as part of the wider cushioning plan.
“Last night’s reduction by 10 shillings on the cost of diesel a litre alone took some 2.7 billion shillings,” he said, adding that the government remained committed to easing pressure on consumers.
He further disclosed that the total subsidy expenditure over the two most recent pricing cycles had reached Sh13.9 billion as global fuel costs continued to fluctuate.
Following the agreement, Wandayi thanked transport operators for accepting to suspend their industrial action and return to service as further discussions continue.
“I must thank the public sector transport providers for the understanding, and for accepting to work closely with the government during these very difficult times,” he said.
Interior Cabinet Secretary Kipchumba Murkomen, who took part in the talks, said the nationwide matatu strike had been suspended for one week to allow further consultations between the government and stakeholders.
Murkomen noted that operators had initially pushed for a Sh46 reduction in diesel prices but agreed to continue negotiations after the government’s interventions.
Federation of Public Transport Sector CEO Koshian Muchiri called on drivers and conductors to resume normal operations, saying dialogue with the government had now gained momentum.
“We would have been happy to get the 46 shillings that we were seeking, but we are also glad that negotiations have started in earnest,” he said.
The agreement comes shortly after the Energy and Petroleum Regulatory Authority review covering the period between May 19 and June 14, 2026. Under the review, Super Petrol is set at Sh214.25 per litre, Diesel at Sh232.86 per litre after a Sh10.06 reduction, and Kerosene at Sh191.38 per litre after an increase of Sh38.60.
EPRA said the review was informed by concerns raised by public transport operators over the widening price gap between diesel and kerosene, a situation authorities linked to possible fuel adulteration concerns.