Kenya has announced a significant reduction in fuel prices, offering relief to consumers and businesses just hours after a sharp increase triggered public concern.
The Energy and Petroleum Regulatory Authority (EPRA) confirmed that the new prices, based on Nairobi reference rates, will take effect from April 16 to May 14, 2026, following a government directive to lower the Value Added Tax (VAT) on petroleum products from 13% to 8%.
The decision was made after intervention by President William Ruto, who moved to ease pressure on consumers following widespread backlash over the sudden price hike.
Under the revised pricing structure, petrol will retail at approximately KSh 197.60 per litre, reflecting a drop of about KSh 9.37, while diesel will decrease by roughly KSh 10.21 to around KSh 196.63 per litre. Meanwhile, kerosene remains unchanged at approximately KSh 152.78 per litre, as it continues to benefit from subsidies aimed at protecting low-income households.
The reduction comes barely 24 hours after EPRA had increased fuel prices to over KSh 206 per litre for both petrol and diesel, a move driven by rising global crude oil prices and exchange rate pressures. The sharp increase had sparked concern among transport operators and businesses, with fears of a ripple effect on the cost of living.
By lowering VAT, the government sought to cushion consumers from external market shocks and stabilize domestic fuel costs. The adjustment is expected to ease pressure on transport fares and commodity prices, which are closely tied to fuel costs.
Despite the relief, fuel prices in Kenya remain relatively high compared to several neighboring countries, reflecting ongoing volatility in global energy markets.
The swift reversal highlights both the sensitivity of fuel pricing in Kenya’s economy and the government’s responsiveness to public reaction, as attention now turns to whether further adjustments will be needed in the coming months.
