The government has announced a reduction in fuel prices for the period between June 15 and July 14, 2026, citing strategic interventions under the Government-to-Government (G2G) fuel import arrangement and the continued stability of the Kenya shilling against the US dollar.
In a statement to newsrooms, Government Spokesperson Dr. Isaac Mwaura said diesel would record the highest reduction, dropping by Sh10.00 per liter, while the price of super petrol would decrease by Sh0.22 per liter. The price of kerosene will remain unchanged during the review period.
Under the new pricing structure, diesel will retail at Sh222.86 per litre, while super petrol will sell at Sh214.03 per litre.
Mwaura attributed the latest adjustments to measures put in place by President Dr. William Ruto’s administration to shield consumers and the economy from volatility in the international oil market.
“The reductions are a result of critical interventions by the president, who secured favourable terms through the G2G arrangement as promised, ensuring a steady and sufficient supply of petroleum products,” he said.
According to the spokesperson, the G2G framework has facilitated reliable fuel imports into the country and contributed to the stabilization of local fuel prices despite fluctuations in global energy markets.
The government also reaffirmed its commitment to cushioning consumers from the high cost of living through tax incentives and targeted subsidies.
Mwaura noted that the Value Added Tax (VAT) on petroleum products remains at eight per cent, half of the standard 16 per cent rate, allowing Kenyans to enjoy relatively lower pump prices.
He said the intervention translates into substantial savings for households and businesses, adding that the government foregoes approximately Sh28 billion in annual revenue to sustain the reduced VAT rate on petroleum products.
“The government continues to prioritise the welfare of citizens by maintaining VAT on petroleum products at eight per cent. This intervention has translated into lower fuel prices and savings for consumers,” he stated.
The statement further assured Kenyans of uninterrupted availability of petroleum products across the country.
Mwaura said the current fuel supply chain remains stable, protecting the country against shortages and ensuring that transport, industrial operations, and domestic energy needs continue without disruption.
“Kenya continues to enjoy a stable supply of petroleum products, safeguarding against shortages and ensuring consistent availability across all sectors, including transport, industry, and households,” he added.
In addition to the fuel price reductions, the government announced that electricity tariffs would remain unchanged during the current review period.
The move, the spokesperson said, is intended to provide consumers and businesses with predictability and relief in their overall energy expenditure.
Mwaura also pointed to the strengthening of the Kenyan shilling against the US dollar as a key factor that has helped moderate the cost of importing petroleum products, thereby contributing to the downward adjustment of local fuel prices.
He noted that the government would continue utilizing the Petroleum Development Levy (PDL) Fund to shield consumers from the effects of global oil price fluctuations.
During the current cycle, approximately Sh10 billion from the fund will be used to subsidize diesel and kerosene prices.
“The government will cushion consumers through the Petroleum Development Levy Fund by utilizing approximately Sh10 billion to subsidize diesel and kerosene, protecting consumers from global price fluctuations and supporting economic stability,” he said.
At the same time, the government reiterated its commitment to promoting fair competition and protecting consumer interests in the energy and petroleum sectors by ensuring transparent and reasonable pricing mechanisms that reflect prevailing market conditions.
The latest fuel review comes even as the government continues to implement policies aimed at reducing the cost of living and sustaining economic growth through affordable energy, stable fuel supplies, and prudent fiscal interventions.
Mwaura reaffirmed the administration’s commitment to fostering national unity and shared prosperity, calling on Kenyans to continue supporting efforts geared towards building a resilient and economically stable nation.
By Anita Kariuki
