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Home » Africa » East Africa » Ruto defends fuel price hike, announces VAT cut from 16% to 8%
East Africa

Ruto defends fuel price hike, announces VAT cut from 16% to 8%

Michael WandatiBy Michael WandatiApril 15, 20263 Mins ReadNo Comments
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Ruto defends fuel price hike, announces VAT cut from 16% to 8%

NAIROBI, Kenya — President William Ruto has defended the latest rise in fuel prices, saying the government has intervened with billions in subsidies and tax adjustments to shield Kenyans from sharper increases driven by global market pressures.

Speaking in South Mugirango Constituency as he concluded a four-day tour of the Gusii region, the President said Kenya had avoided the worst of the global fuel crisis affecting several countries.

“We have had issues of war in the Middle East and the price of fuel is high everywhere, but in Kenya, tumepanga vizuri kuhakikisha kuwa ile bei ambayo ingeruka juu sana, tumeifanyia moderation,” he said. “Tumetoa pesa ya serikali Ksh.6.5 billion kuleta subsidy; we have brought down VAT to ensure we moderate the fuel.”

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He added that the government plans a further temporary tax intervention: “We are going to bring down VAT from 16% to 8% for the next three months until we make sure we make it through this phase,” he stated.

The President attributed the rising fuel costs to geopolitical tensions in the Middle East, which have disrupted global supply chains and driven up international oil prices.

Kenya, which relies entirely on imported refined petroleum products, remains exposed to such external shocks, with local pump prices influenced by global benchmarks and the exchange rate against the US dollar.

Ruto also defended the government-to-government (G2G) fuel import arrangement, arguing that it has stabilised supply and improved Kenya’s position in the region.

“You cannot compare our fuel with our region or other countries. There are countries which do not have fuel, but we have enough fuel,” he said.

The remarks come a day after the Energy and Petroleum Regulatory Authority (EPRA) announced a sharp increase in fuel prices for the April–May cycle.

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Under the latest EPRA review:

  • Super Petrol rose by Ksh28.69 per litre
  • Diesel increased by Ksh40.30 per litre
  • Kerosene prices remained unchanged

In Nairobi, prices now stand at:

  • Petrol: Ksh206.87 per litre
  • Diesel: Ksh206.84 per litre
  • Kerosene: Ksh152.78 per litre

The regulator said the adjustments reflect rising landed costs, exchange rate pressures, and global market volatility, even as the government deploys subsidies and tax relief measures.

Opposition leaders, including Rigathi Gachagua, Kalonzo Musyoka, Fred Matiang’i, Eugene Wamalwa and Justin Muturi, have criticised the government’s handling of the fuel sector.

Also Read: Opposition accuses Ruto of profiting from Kenya fuel deal as prices rise

They allege irregularities in petroleum importation under the G2G framework and have threatened mass action if the situation is not addressed.

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In response, President Ruto accused his critics of lacking policy alternatives, saying they were engaging in divisive politics rather than offering solutions.

The impact of the fuel hike is already being felt across the economy, with transport operators announcing fare increases.

The Matatu Owners Association said fares would rise by about 25% nationwide.

Association President Albert Karakacha confirmed the adjustment would take effect immediately, affecting both short- and long-distance travel.

With fuel accounting for a significant share of transport and production costs, analysts warn the increase could trigger a broader rise in the cost of goods and services, placing additional pressure on households.

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Michael Wandati
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Michael Wandati is an accomplished journalist, editor, and media strategist with a keen focus on breaking news, political affairs, and human interest reporting. Michael is dedicated to producing accurate, impactful journalism that informs public debate and reflects the highest standards of editorial integrity.

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