Kenya moves to ease fuel crisis as commuters struggle with high costs

The Kenyan government has responded to the public calls to lower fuel prices by announcing a series of interventions aimed at cushioning consumers and transport operators from the soaring cost of petroleum products, driven by the global oil supply disruptions linked to the Middle East conflict.

Speaking after a consultative meeting with transport stakeholders in Mombasa on Friday, President William Ruto said the government will reduce diesel prices by 10 Kenyan shillings (USD 7.7 cents) per liter in the June-July pricing cycle and continue using stabilization measures to ease the burden on households and businesses.

The move followed nationwide protests and a public strike triggered by a sharp increase in fuel prices, with diesel prices rising by 23.5 percent in the May-June pricing cycle.

The protests disrupted transport services across major towns and left four people dead and more than 30 injured during clashes between police and protesters.

Ruto said that through the Petroleum Development Fund, Kenya has built strategic financial reserves to help stabilize the market during periods of volatility without disrupting the broader economy.

"Without government intervention during this cycle, super petrol would today have retailed at $1.77 per litre instead of $1.65; diesel would have retailed at $2.14 instead of $1.79; and kerosene would have retailed at $2.08 instead of $1.47," he said.

To reduce future exposure to global fuel instability, he said Kenya is accelerating investments in renewable energy, electric mobility, modern public transport and energy security infrastructure.

"The government has already ordered 3,000 electric vehicles through the Ministry of Interior for use by our security and administration officials," he said. "I am also making a declaration that the first 100,000 electric vehicles imported into Kenya, whether for public service or private use, will be duty-free."

Transport operators and commuters have welcomed the planned diesel price reduction, although stakeholders continue to push for additional cuts.

The spike in fuel costs has forced public transport operators to hike fares by as much as 50 percent, placing an immediate strain on the daily budgets of working Kenyans.

In addition, the increase in diesel prices – critical for transporting goods and powering production – has triggered a ripple effect, driving up the prices of basic food items and other commodities and further eroding consumers' purchasing power.

Nancy Kamene, a resident of Nairobi, said bus fares to her workplace had recently increased from $0.38 to between $0.77 and $1.15.

"The price of food items has also gone up, and I'm worried that the price may rise even further," she said. "Many of my neighbors are struggling to pay rent. The future is uncertain."

Similar concerns were expressed by Gitau Mwangi, who lives in Ruiru, Kiambu County, and works in Nairobi. He said his daily bus fare had increased from $2.15 to $3.08.

Although he owns a personal car that would offer more convenience, he has been forced to leave it at home and rely on public transport, which is now the cheaper option.

Mwangi added that his monthly spending on basic needs had risen by about by $77.

"I have been compelled to dig deeper into my pockets, leaving me with less disposable income. It's making life unbearable," he said. "The cost of refilling a 13-kilogram liquefied petroleum gas cylinder has increased from $18.49 to $23.89. While the prices of several items have shot up, salaries remain constant."

Mwangi appeals to the government to allow more people to work from home to cushion them from high transport costs. However, he noted that many jobs – particularly in the informal sector, which employs a large number of low-income earners - require workers to be physically present at their workplaces.

Emmanuel Waweru, a public transport driver in Nairobi, said operators are struggling to balance income among drivers, conductors and vehicle owners.

"We urge the government to stabilize fuel prices; otherwise, it may be hard to meet our basic needs," he said.

edithmutethya@chinadaily.com.cn