President William Ruto Defends Record Fuel Hikes Citing KSh 6.5 Billion Strategic Subsidy Allocation

President William Ruto asserts that KSh 6.5 billion in subsidies and VAT cuts prevented higher fuel prices, despite petrol and diesel crossing the KSh 200 mark.

By: AXL Media

Published: Apr 15, 2026, 10:00 AM EDT

Source: Information for this report was sourced from TUKO.co.ke

State Intervention Amid Historic Energy Price Reviews

President William Ruto has issued a formal defense of the latest energy price adjustments, asserting that the Kenya Kwanza administration has actively mitigated the impact of a global supply crisis. Speaking to residents in Kisii, the head of state emphasized that without specific government cushions, the retail cost of fuel would have reached significantly higher levels. This address follows an announcement by the Energy and Petroleum Regulatory Authority that pushed diesel to KSh 206.84 and petrol to KSh 206.97 per litre. According to Ruto, these figures, while historic, reflect a moderated reality made possible by the state’s decision to absorb a portion of the landed costs rather than passing the full burden to the consumer.

The Strategic Role of the G-to-G Petroleum Framework

Central to the president's economic defense is the Government-to-Government petroleum arrangement, which he credits with securing Kenya’s energy independence during a period of international volatility. Ruto argued that while neighboring nations face acute fuel shortages and dry pumps, the G-to-G deal has ensured a consistent and sufficient supply for the domestic market. He noted that other countries have reached out to Kenya to study the success of this procurement model. By leveraging state-backed agreements with Middle Eastern suppliers, the president contends that Kenya has maintained a competitive edge in the region, shielding the transport sector from the total paralysis seen in less prepared economies.

Financial Allocations and Value Added Tax Adjustments

To facilitate the current price levels, the government has deployed a multi-pronged fiscal strategy involving direct subsidies and legislative tax shifts. President Ruto revealed that KSh 6.5 billion has been allocated specifically to subsidize fuel, with diesel receiving a support of KSh 20.30 per litre and petrol KSh 4.92. Furthermore, the administration has implemented a reduction in Value Added Tax on petroleum products, lowering the rate from 16% to 13%. These measures were designed to offset a 68% rise in the landed cost of diesel imports recorded in March, which officials attribute to escalating shipping fees and disruptions at international refineries.