Government spends Ksh 11.5 billion to stabilize fuel prices despite low kerosene demand

Kenya's government has spent more than Ksh 11 billion in two months to keep diesel and kerosene prices steady. The move has raised questions because kerosene makes up less than 1 per cent of national fuel use.

On 14 May the Energy and Petroleum Regulatory Authority increased the price of diesel in Nairobi by Ksh 46.29 to Ksh 242.92 per litre and raised petrol by Ksh 16.65 to Ksh 214.25. Kerosene stayed at Ksh 152.78.

Energy Cabinet Secretary Opiyo Wandayi said the government used Ksh 5 billion from the Petroleum Development Levy to limit the rises. Combined with an earlier Ksh 6.5 billion outlay in April, the total exceeds Ksh 11 billion over two review periods.

President William Ruto ordered the kerosene freeze last month to protect low-income households that rely on it for cooking and lighting. Data from the Kenya National Bureau of Statistics show kerosene accounted for only 0.8 per cent of petroleum demand in 2025 while light diesel oil reached 42.3 per cent.

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