Eyes on fuel prices as President Ruto faces test on Sh10 diesel reduction pledge

The Kenya Transporters Association warns fuel rationing is disrupting supply chains and raising costs, as shortages persist despite government assurances of adequate stocks. (Photo: Freepik)

By Lucy Mumbi
Sunday, June 14, 2026

If fully applied, diesel in Nairobi would reduce to about Sh222.86 per litre, down from the current Sh232.86. Petrol is currently selling at Sh214.25 per litre.

All eyes are on whether the government will today honour its promise to cut diesel prices by Sh10 per litre as the Energy and Petroleum Regulatory Authority (EPRA) prepares to announce new fuel prices.

The development comes after President William Ruto, during a meeting with transport operators on May 22 at State House, pledged the reduction, which led to the suspension of a planned nationwide strike that had paralysed movement across the country.

“I have directed that in the next pricing cycle, we’re going to further reduce the price of Diesel by a further Sh10 for the June/July cycle to help stabilise pump prices and provide additional relief to consumers,” Ruto said then.

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President Ruto, however, defended the government’s fuel stabilisation measures, saying the State had spent Sh28.19 billion across the April/May and May/June 2026 pricing cycles to cushion consumers through direct subsidies and tax relief interventions.

Uncertainty also remains over other promises made to the transport sector, including insurance costs and vehicle financing. During the State House meeting, Ruto instructed the Ministry of Transport and other agencies to engage financial institutions on possible debt relief measures for operators struggling with vehicle loans.

Many public service vehicle owners argue that while a drop in diesel prices would bring immediate relief, high insurance costs, loan repayments and compliance expenses continue to strain their businesses.

Among the ideas discussed was a possible break on loan repayments for operators facing financial pressure.

The government has maintained that it will continue using the Petroleum Development Fund and tax measures to protect consumers from global fuel price shocks.

However, the diesel price cut remains the main measure by which operators are judging government commitment, with warnings that failure to deliver could bring back frustration that was temporarily paused after the State House talks.