President William Ruto has outlined a set of government measures aimed at shielding Kenyans from rising fuel costs, saying the State has stepped in through financial reserves and tax adjustments to ease pressure linked to global oil price swings.
Addressing the nation from State House, Mombasa on Friday, Ruto said the government has relied on the Petroleum Development Levy Fund to build reserves used to stabilise fuel prices whenever global markets become unstable.
“The government of Kenya has not stood by. We have undertaken several consequential interventions,” Ruto said.
He explained that a total of Sh13.7 billion was used across two consecutive fuel pricing cycles covering April-May and May-June to cushion consumers from sharp increases.
Part of the intervention also involved a tax decision reached with Parliament, where Value Added Tax on petroleum products was reduced from 16 per cent to 8 per cent to reduce the cost burden on households and businesses.
During the April-May pricing cycle, the government spent Sh6 billion to stabilise fuel prices and also forewent Sh6.41 billion in VAT revenue, bringing total support for that period to Sh12.45 billion.
As a result, fuel prices dropped, with super petrol reducing by Sh19.67 per litre, diesel by Sh40.25, and kerosene by Sh115 per litre.
For the May-June cycle, Ruto said an additional Sh7.7 billion was used for price stabilisation, while Sh8 billion in VAT revenue was also foregone.
“To cushion consumers from the sharp rise of global oil prices, the government has used the fund to stabilise fuel prices,” he said.
He added that this brought the total intervention for the month to Sh15.72 billion, leading to further reductions where super petrol dropped by Sh15.87 per litre, diesel by Sh44.89, and kerosene by Sh78 per litre.
Ruto maintained that the interventions are part of broader efforts to protect Kenyans from external shocks while keeping the economy stable.
He said the government will continue pursuing policies that balance consumer protection and long-term economic growth.