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Kenya Proposes Kerosene Price Hike Amid Fuel Crisis

The government has proposed raising kerosene prices to protect diesel-powered vehicles from potential engine damage, amid a growing fuel crisis in Kenya. Energy Cabinet Secretary Opiyo Wandayi announced this on May 18, 2026, highlighting that the significant price gap between diesel and subsidized kerosene has led to fuel adulteration, where cheaper kerosene is mixed with diesel for profit.

This announcement coincided with a nationwide transport strike, disrupting operations for matatu operators, truck drivers, boda boda riders, and others due to soaring fuel prices. Major roads were blocked, businesses closed, and schools suspended classes in various towns, leaving commuters stranded.

Wandayi stated that the government aims to reduce the price disparity between kerosene and diesel to discourage fuel adulteration. He emphasized that this adjustment is crucial to safeguard the numerous diesel-powered vehicles essential for Kenya’s transport and supply chain.

Fuel adulteration poses risks, damaging engines and increasing emissions, despite lowering costs for some traders and motorists. The Energy and Petroleum Regulatory Authority collaborated on this proposal, but transport operators expressed disagreement, stating that no consensus had been reached.

Kenya’s rising fuel prices stem from global supply disruptions and soaring international oil prices. The country heavily relies on imports from Gulf nations, making it susceptible to geopolitical instability, particularly from the ongoing US-Israel-Iran tensions that have impacted shipping routes.

Deputy President Kithure Kindiki defended the government’s measures to mitigate the crisis, asserting that without these actions, fuel prices could have surged even higher. Treasury Cabinet Secretary John Mbadi described the situation as a global issue affecting multiple countries.

As the government faced protests in response to the proposed adjustments, the Transport Sector Alliance initiated a nationwide strike. Demonstrators blocked roads and disrupted businesses, resulting in significant unrest. Interior Cabinet Secretary Kipchumba Murkomen reported casualties and injuries during the protests, while police arrested numerous individuals for their involvement.

The Matatu Owners Association and other transport stakeholders are advocating for the removal of fuel taxes, citing the adverse effects of rising fuel costs on the economy. Meanwhile, the Law Society of Kenya has threatened legal action against the government over the economic strain caused by these fuel hikes.

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