Government assures Kenyans of better times ahead
News Updated: 15 June 2026 18:23 EAT
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Cabinet Secretary for Energy and Petroleum Opiyo Wandayi has expressed hope that the country may start experiencing a significant drop in fuel prices from next month following a newly signed United States–Iran peace agreement that is expected to end the Middle East crisis.
Mr Wandayi explained the truce is expected to lead to the reopening of the crucial Strait of Hormuz maritime route, which handles a substantial portion of Kenya’s fuel imports.
The Cabinet Secretary assured Kenyans that the government has stepped up to ensure that the country continues to receive a continuous supply across the 47 counties.
He pointed out that the government is actively cushioning consumers from Middle East oil shocks by deploying a Kshs 10 billion subsidy from the Petroleum Development Levy and halving the Value-Added Tax (VAT) on petroleum products to 8 percent.
Speaking in Dorobo Village within Mosiro Ward in Narok East Constituency where he presided over launch of last mile connectivity project, the Cabinet Secretary noted that the fuel crisis is a global thing, adding that countries have introduced emergency measures to address the crisis.
He stated that other countries have ended up instructing citizens to work from home in order to reduce fuel consumption.
“We have stepped up to ensure Kenyans continue to receive a stable, continuous fuel supply within the country and to cushion Kenyans as much as possible from the full impact of this global crisis,” Mr Wandayi stated.
He observed that the government has fulfilled its promise to reduce fuel prices following the latest monthly review by the Energy and Petroleum Regulatory Authority (EPRA) for the June 15 to July 14, 2026 cycle.
This price drop directly honors a state directive issued by President William Ruto to mitigate the high cost of living and resolve transportation sector gridlock.
In the newly released pricing framework, EPRA implemented a notable cut for diesel, alongside a minor adjustment for petrol
Diesel decreased by Sh10.00 per litre, dropping the price in Nairobi to Sh222.86. Super Petrol decreased by a marginal Sh0.22 per litre, lowering it to Sh214.03 in Nairobi.
Kerosene remains completely unchanged, retailing at Sh191.38 per litre.
Mr Wandayi stated that the reductions were made possible through specific economic interventions including the Government-to-Government petroleum import deal with Gulf oil giants which allowed Kenya to lock in favorable supply terms and bypass volatile international spot markets
He added that the steady performance of the Kenyan Shilling against the US Dollar kept landing and importation costs manageable and noted that by maintaining the Value Added Tax (VAT) on petroleum products at 8 percent rather than the standard 16 percent rate, an estimated Sh28 billion in annual revenue was forfeited to shield consumers.
The Cabinet Secretary however cautioned that a more permanent, significant decline relies heavily on global dynamics and explained that because Kenya’s fuel pricing formula relies on international benchmark prices from the preceding month, the financial relief will not be immediate.
“Kenya’s fuel supply chains remain heavily secure with nationwide storage facilities fully stocked through the end of July 2026, mitigating any threat of domestic shortages. We are working with the private sector to ensure petroleum strategic reserves,” Mr Wandayi
He went on “We are in talks to establish a regional petroleum refinery on East African Coastline that will in the long term cut the cost of fuel in this region,”
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