By Issa Hussein - Reporter
Kenya, 14 June 2026 - The lowering of diesel prices in Kenya by KSh 10 per litre, coupled with U.S. President Donald Trump’s optimism that the deal with Iran is near completion, signals renewed hope for many struggling sectors.
Trump said that the deal with Iranian officials could be signed Sunday night, a move that could pave the way for the full reopening of the Strait of Hormuz, a key channel that permits 20% of the world’s petroleum supply.
This development comes even as Trump’s key ally Benjamin Netanyahu vowed that Iran would not be allowed to have a nuclear weapon so long as he is still in power.
Trump stated that in the proposed deal, there will be no exchange of cash.Back to Kenya, petrol motorists will save just 22 cents per litre under the latest fuel review, while diesel users get the KSh 10 reduction which President William Ruto publicly announced at Mombasa State House after meeting key stakeholders in May 2026.
The new prices, released by the Energy and Petroleum Regulatory Authority (EPRA), take effect from midnight on 15 June 2026 and will remain in force until 14 July 2026.
In Nairobi, Super Petrol will retail at KSh 214.03 per litre, down from KSh 214.25. Diesel drops from KSh 232.86 to KSh 222.86, while kerosene remains unchanged at KSh 191.38.
The latest review has been supported by a government intervention through the Petroleum Development Levy (PDL) Fund, with approximately Sh10 billion allocated to cushion consumers against rising fuel costs.
EPRA said the subsidy will primarily support diesel and kerosene prices, helping offset pressures from international market trends and exchange rate fluctuations.
The move is expected to provide relief to transport operators, manufacturers and households, particularly at a time when fuel prices remain a key driver of inflation and the overall cost of living.
The regulator noted that the reviewed prices are inclusive of taxes and levies, including Value Added Tax (VAT), excise duty and other charges provided for under existing tax laws and regulations.
According to EPRA, the average landed cost of imported petroleum products recorded mixed movements between April and May 2026.
The landed cost of super petrol declined by 0.56%, falling from US$906.23 per cubic metre in April to US$901.16 per cubic metre in May.
Meanwhile, the landed cost of diesel increased marginally by 0.21 percent, rising from US$1,291.98 per cubic metre to US$1,294.71 per cubic metre.
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For kerosene, the landed cost dropped by 0.33%, from US$1,332.73 per cubic metre to US$1,328.36 per cubic metre.
Despite the increase in diesel import costs, the government subsidy enabled a substantial reduction at the pump, shielding consumers from higher prices.
EPRA observed that international petroleum markets continue to experience fluctuations. Kenya imports all its petroleum products in refined form, making local pump prices highly sensitive to global fuel prices.
In May 2026, international prices stood at US$1,127.09 per metric tonne for super petrol, US$1,108.58 for diesel, and US$1,164.11 for kerosene. Although these prices remained elevated, they were lower than the peaks recorded in March 2026 when diesel rose to US$1,383.78 per metric tonne and kerosene reached US$1,512.68 per metric tonne.
The regulator also highlighted the impact of foreign exchange movements on fuel pricing. Since petroleum products are purchased in US dollars, any weakening of the Kenyan shilling increases import costs.
The exchange rate used in fuel price calculations moved from KSh 129.56 per US dollar in April to KSh 129.82 per US dollar in May, reflecting a slight depreciation of the local currency.
The sharp reduction in diesel prices is expected to ease operational costs for the transport and logistics sectors, which rely heavily on diesel-powered vehicles. Industry stakeholders have repeatedly called for measures to lower fuel costs, citing their impact on transport fares, food prices and business expenses.
EPRA said the revised pricing is intended to ensure petroleum importers and marketers recover prudently incurred costs while maintaining reasonable prices for consumers.
The authority is expected to publish detailed maximum retail pump prices for Nairobi and other towns in its accompanying gazette notice.
The next monthly fuel review is expected in mid-July 2026.
Explainer: Fuel Price Slash to Boost Businesses as Trump’s Optimism Raises Hopes for De-escalation at Strait of Hormuz
Relief at filling stations after slight drop in fuel prices.