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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Image of a gas station in the Philippines illustrating rising fuel prices amid Middle East tensions.
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Fuel prices rise in Philippines as Middle East tensions persist

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Oil companies raised gasoline and diesel prices on May 19 while lowering kerosene rates, citing renewed geopolitical risks in the Middle East. The Department of Energy set maximum adjustments to stabilize the market.

Waziri wa Nishati na Mafuta Opiyo Wandayi amesema Rais William Ruto aliamuru EPRA isiongeze bei za parafini licha ya ongezeko la bei za petroli na dizeli. Anasema maagizo haya yanalenga kulinda kaya za kipato cha chini. Aidha, serikali imeweka ruzuku ya Ksh6.2 bilioni na kupunguza VAT ya mafuta.

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Energy and Petroleum Cabinet Secretary Opiyo Wandayi has announced that Kenya has secured adequate fuel stocks to ensure uninterrupted supply ahead of the Energy and Petroleum Regulatory Authority's June-July price review scheduled for June 14.

Fuel prices will increase again on Tuesday, May 5, with diesel rising by P2.66 per liter and gasoline by P2.21 per liter, Energy Secretary Sharon Garin said. Kerosene prices will decline by P3.53 per liter.

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Wadau wa sekta ya usafiri nchini Kenya wameitisha serikali kupiga vikomo vya bei ya diesel kwa Ksh140 na petroli kwa Ksh150 kwa lita moja, na kurejesha ruzuku za mafuta kutokana na ongezeko la bei hivi karibuni. Kikao cha dharura kilifanyika Nairobi leo chini ya Forumu la Sekta ya Usafiri, wakiongozwa na Chama cha Wadhibiti wa Kenya (MAK), na wametoa onyo la hatua za umati kama mahitaji yao hayatazingatiwa.

Oil companies raised fuel prices again on Tuesday, April 7, 2026, with diesel hikes up to P19.80 per liter. The increases stem from ongoing US-Iran tensions and global oil supply disruptions. This marks the 13th to 15th consecutive weekly rise.

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Petrol stations in Nairobi and surrounding areas are selling fuel below the EPRA maximum of KSh214 per litre for the May-June cycle, with some offering prices as low as KSh211. This is possible because EPRA sets only a ceiling price rather than a fixed rate.

 

 

 

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