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Originally published by Capital Business
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business
May 15, 2026
1mo ago

Govt defends G-to-G fuel deal, cites Middle East conflict for fuel prices rise

Govt defends G-to-G fuel deal, cites Middle East conflict for fuel prices rise

The Ministry of Energy and Petroleum said Kenya remains vulnerable to external shocks as a net importer of petroleum products, with international crude prices, freight charges and insurance premiums continuing to surge. Kenya breaking news | Kenya news today |..

✨ Key Highlights

The Kenyan government has defended a recent surge in fuel prices, citing Middle East conflict-driven global oil market volatility as the primary cause for increased pump costs.

  • Super Petrol prices rose by Sh16.65 per litre and Diesel by Sh46.29 in Nairobi.
  • The Ministry of Energy and Petroleum stated Kenya is vulnerable to external shocks as a net importer.
  • The government has deployed Sh5 billion from the Petroleum Development Levy to help stabilize prices for diesel and kerosene.

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Part of the Day's Coverage

Matatu Fares Jump 50pc as Operators Protest Fuel Prices - May 2026

Matatu operators are implementing a 50 percent fare increase and planning a nationwide strike starting Monday in protest against recent fuel price hikes. The Energy and Petroleum Regulatory Authority announced significant price hikes for petrol and diesel in Kenya, effective May 15, 2026, due to rising global fuel costs and the reinstatement of 8% VAT. Public transport operators have expressed concern following the fare increases. The Kenyan government defended the fuel price surge, citing Middle East conflict-driven global oil market volatility as the primary cause for increased pump costs. Kiharu MP Ndindi Nyoro is urging the government to implement significant tax reductions and levy removals to combat soaring fuel prices.

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