Treasury Cabinet Secretary John Mbadi has said the recently increased fuel prices will remain in place until the next pricing review scheduled for June 14, 2026.
Speaking amid mounting public concern over the rising cost of living, Mbadi attributed the fuel price surge to global supply disruptions linked to tensions between the United States and Iran in the Gulf region.
Mbadi Blames Global Supply Disruptions
According to the Treasury CS, the ongoing geopolitical conflict has affected fuel supply channels, leading to increased petroleum costs globally.
He noted that the government is closely monitoring the situation ahead of an expected Executive meeting with President William Ruto aimed at discussing possible interventions.
Government Considering Fuel Stabilisation Measures
Mbadi indicated that the State could intervene to cushion consumers during the next review cycle, including the possible use of funds from the Petroleum Development Levy (PDL).
“We will look at the subsidy kitty that we have and if that is not going to be sufficient we will see what to do. We will then look at the fuel levy especially the VAT. And we will check on what to cut in terms of expenditure,” Mbadi said during an interview on NTV Kenya.
Reports indicate the government may consider utilising part of the KSh5 billion available in the Petroleum Development Levy Fund to stabilise prices.
CS Warns Against Transport Strike
The Treasury CS also criticised the ongoing strike by public transport operators, warning that it could worsen the economic situation and reduce the government’s ability to subsidise fuel prices.
“I don’t think a strike is the solution. The price of petroleum products has increased everywhere in the world,” he stated.
“The economy will be hit further and we will have no resources to further subsidize. I am not happy to see Kenyans walking.”
Mbadi further questioned whether transport sector stakeholders had sufficiently engaged the government before calling for industrial action.
EPRA Recently Raised Fuel Prices
His remarks come days after the Energy and Petroleum Regulatory Authority (EPRA) announced a sharp increase in fuel prices.
Under the latest review, the price of Super Petrol rose by KSh16.65 per litre while Diesel increased by KSh46.29 per litre. The price of Kerosene remained unchanged.
The new prices have triggered widespread public criticism and renewed debate over Kenya’s fuel pricing system.
