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The Services Economy

Broken

Reduction in fuel prices

The Kenya Kwanza government pledged to review the taxes and lower pump prices in the first hundred days of being in office.

 

 

 

  • After his swearing-in, contrary to the promise made, the President scrapped the fuel subsidy program, stipulating that it was a burden to the Treasury. This led to an increase in fuel prices. He, nonetheless, introduced a fuel stabilization fund after the first 100 days of his tenure that led to a temporary reduction in the fuel prices that offered relief to Kenyans from petroleum price spikes.
  • However, in April 2026, the Energy and Petroleum Regulatory Authority (EPRA) raised diesel prices by KShs. 40.30 to an all-time high of KShs. 206.84 per litre, then. The government highlighted that the hike was triggered by geopolitical tensions in the Middle East and offered to reduce the VAT on petroleum products from 16 per cent to 8 per cent, prompting a temporary reduction in fuel prices; petrol by KShs. 9.37 and diesel by KShs 10.21, that was short-lived as on 15th May 2026, EPRA announced an increase in petrol prices by Sh 16.65 and an increase in Diesel prices by Sh 46.29, to a record high. This triggered a nationwide strike in the transport sector as matatus, bodabods and taxis halted operations.
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Mzalendo is a Kenyan non-partisan Parliamentary monitoring organization whose mission is to “promote the realization of open, inclusive, and accountable Parliaments across Kenya and Africa”.
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This Promise Tracker is an independent civic-accountability tool designed to monitor and document the progress of public commitments made by the Government of Kenya. Information presented on this platform is compiled from publicly available sources including government publications, parliamentary records, policy documents, and credible media reports. The classifications used in this tracker represent an evidence-based assessment by the platform’s researchers and should be understood as analytical judgments rather than official government determinations. While every effort is made to ensure accuracy and regular updates, the status of promises may evolve as new information becomes available. This website is not affiliated with or operated by the Government of Kenya.

Last updated: May 19, 2026 12:39 pm
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