President William Ruto has unveiled an aggressive push towards electric mobility, including duty-free importation of the first 100,000 electric vehicles, as Kenya grapples with the impact of a global fuel crisis that has sent international oil prices soaring and increased pressure on the cost of living.
Speaking on Friday at State House in Mombasa, the President said the government was accelerating plans to reduce the country's dependence on imported fuel while cushioning consumers from the effects of one of the most severe disruptions in the global oil market in recent years.
Ruto said the crisis stemmed from instability around the Strait of Hormuz, a critical global oil transit route through which nearly a fifth of the world's oil supply passes every day.
According to the President, the disruption has triggered sharp increases in international fuel prices, with super petrol rising by 54 per cent, diesel by 118 per cent and kerosene by 126.4 per cent.
“The current fuel prices reflect the global reality,” President Ruto stressed. “We recognize that these increases are painful and carry serious consequences for transport costs, food production, business operations, and the overall cost of living.”
The President's remarks came days after transport disruptions and protests rocked parts of the country following a steep rise in local fuel prices linked to the global oil shock.
Reports indicated that diesel prices increased by 23.5 per cent while petrol rose by 8 per cent, sparking anger among transport operators and consumers over rising transport and food costs.
The demonstrations resulted in at least four deaths, more than 30 injuries and over 300 arrests. Public transport operators also staged a strike that affected major towns and cities, including Nairobi and Mombasa, with demands for fuel price reductions of up to Sh46 per litre.
Ruto said many countries were introducing emergency measures to deal with rising fuel costs and supply challenges, with some governments resorting to fuel rationing while others had reduced working days or encouraged employees to work from home.
He defended Kenya's response, saying the government had used the Petroleum Development Levy Fund and tax relief measures to shield consumers from the full impact of the price increases.
According to the President, the government spent Sh12.45bn during the April-May 2026 pricing cycle through fuel stabilisation measures and VAT relief after reducing VAT on petroleum products from 16 per cent to 8 per cent.
The intervention, he said, lowered the cost of super petrol by Sh19.67 per litre, diesel by Sh40.25 and kerosene by Sh115 per litre.
Ruto further revealed that the government spent another Sh15.72bn during the May-June 2026 pricing cycle, reducing super petrol prices by Sh15.87 per litre, diesel by Sh44.89 and kerosene by Sh78 per litre.
Combined, the government has spent Sh28.19bn on fuel support measures across the two pricing periods.
The President also announced a further reduction in diesel prices during the June-July pricing cycle following consultations with stakeholders in the transport sector.
“Our responsibility as government is to solve today’s problem without creating a bigger problem tomorrow,” he noted.
Ruto defended the continued collection of fuel taxes and levies, arguing that eliminating them would undermine funding for critical public services and development programmes.
He said revenues from the charges support roads, schools, hospitals, security operations and fertiliser subsidy programmes.
“Leadership requires honesty, not political opportunism or playing populist politics,” Ruto highligted.
The President also defended the government-to-government fuel import arrangement introduced in 2023, saying it had helped maintain a steady fuel supply while reducing pressure on the Kenya shilling by lowering demand for US dollars.
“The framework has protected the economy during the crisis,” he noted. “Without it, the country’s situation would be much worse.”
As part of the government's long-term strategy, Ruto announced measures aimed at speeding up the country's transition to electric transport.
He revealed that the Ministry of Interior had already ordered 3,000 electric vehicles for use by security and administrative officers.
In addition, the President declared that the first 100,000 electric vehicles imported into Kenya for either private or public use would be exempt from import duty.
The government is also seeking investors to establish electric vehicle assembly and manufacturing plants in the country while increasing investment in renewable energy, modern public transport systems and energy security infrastructure.
“This is not only about overcoming the current crisis, but also about building a more self-reliant, resilient and economically secure Kenya for generations ahead,” he said.
Ruto further disclosed that Kenya was working with East African partner states and private investors to develop oil reserves in Turkana and establish a regional refinery aimed at reducing reliance on international fuel markets.
He assured Kenyans that the country had adequate fuel stocks and urged citizens to remain calm as the government continued engaging transport operators, businesses and financial institutions on measures to ease the burden created by the global fuel crisis.