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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Fuel prices roll back up to P23 per liter starting April 14 after weeks of Middle East-driven hikes

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Oil firms confirmed price rollbacks effective 6 a.m. Tuesday, April 14, matching Department of Energy projections: diesel down P20.89 to P23 per liter, gasoline P4.43 to P4.50, and kerosene P8.50. The cuts end surges of over P100 on diesel since late February's Middle East crisis. President Marcos suspended excise taxes on LPG and kerosene, while a jeepney subsidy launches.

Energy Cabinet Secretary Opiyo Wandayi has claimed President William Ruto directed EPRA to keep kerosene prices unchanged despite petrol and diesel hikes. The move aims to protect low-income households. The government also introduced a Ksh6.2 billion fuel subsidy and cut VAT on fuel.

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The Energy and Petroleum Regulatory Authority (EPRA) has announced new fuel prices for the April-May 2026 cycle, with super petrol rising by Ksh28.69 per litre to Ksh206.97 in Nairobi. Diesel increased by Ksh40.30 to Ksh206.84 per litre, while kerosene remains unchanged at Ksh152.78. The hikes stem from sharp rises in landed costs combined with taxes and margins.

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Oil firms will implement fuel price adjustments on Tuesday, April 28, 2026, with diesel and kerosene posting rollbacks while gasoline edges higher. The Department of Energy reported a minimum diesel rollback of P12.94 per liter, kerosene by P15.71 per liter, and a gasoline increase of P0.53 per liter.

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