By Benadeta Mwaura - Reporter
Kenya, May 22, 2026 - President William Ruto has defended the government’s handling of the ongoing fuel crisis, outlining a series of fiscal and policy interventions aimed at stabilising pump prices, securing supply, and cushioning households and businesses from the impact of the global energy shock.
Speaking during a national address at State House, Mombasa, following consultations with transport sector stakeholders, the President said the sharp rise in fuel prices was being driven by global disruptions rather than domestic policy failure, linking the surge to the ongoing conflict in the Middle East and its impact on international oil supply chains.
He cited disruptions in the Strait of Hormuz, through which nearly one-fifth of global oil passes, as a key trigger of the current shock, noting that the escalation since February 2026 had pushed up global fuel prices significantly, with diesel recording the steepest increases internationally.
According to the President, the crisis has affected countries across all regions, with some already introducing rationing, reduced working days, and emergency demand management measures.
Ruto maintained that Kenya’s priority has been twofold — ensuring uninterrupted fuel supply and cushioning citizens from the full impact of global price volatility.
He argued that government intervention has been necessary to prevent a sharper economic shock to households already struggling with high living costs.
Central to his defence was the government’s use of the Petroleum Development Fund, through which KSh13.74 billion has been deployed across the April–May and May–June 2026 fuel pricing cycles to stabilise pump prices.
In addition, the reduction of VAT on petroleum products from 16 per cent to 8 per cent has resulted in a foregone revenue of KSh14.43 billion, which the President said has directly eased pressure on consumers and businesses.
Across the two pricing cycles, the government has committed a total of KSh28.19 billion through a combination of direct stabilisation support and tax relief measures, which he said has shielded millions of Kenyans from even higher fuel costs and broader inflationary pressure.
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The President also strongly defended the Government-to-Government (G-to-G) fuel procurement framework, describing it as a critical stabilisation mechanism that has ensured consistent fuel supply during a period of global uncertainty.
He argued that the arrangement has reduced exposure to volatile spot-market pricing and eased pressure on foreign exchange demand, thereby helping to stabilise the Kenya shilling and secure predictable fuel imports.
According to Ruto, the G-to-G model has insulated the economy from supply disruptions that would otherwise have worsened shortages and price instability, particularly at a time when global oil markets remain highly unpredictable.
He further noted that fuel price increases have far-reaching consequences for ordinary Kenyans, affecting transport costs, food prices, business operations, and household budgets.
The government, he said, has therefore been compelled to balance immediate relief measures with long-term fiscal responsibility.
At the same time, the President pushed back against calls for the removal of taxes and levies on fuel, warning that such a move would create gaps in funding for critical public services, including infrastructure development, fertiliser subsidies, security operations, healthcare, and education.
“These are not simple decisions,” he said, emphasising that government must safeguard both immediate affordability and long-term economic stability, especially in a prolonged and uncertain global oil crisis.
The address comes amid sustained public concern over high fuel prices and recent demonstrations, with the administration seeking to frame its interventions as a structured response to a global shock rather than isolated domestic policy choices.
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