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Originally published by Nation Business
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business
August 14, 2026
11h ago

How delicate balancing act in new fuel prices subsidy denied diesel users Sh14 cut

How delicate balancing act in new fuel prices subsidy denied diesel users Sh14 cut

Government heavily subsidised pump prices between April and June this year...

✨ Key Highlights

Kenyan diesel consumers have missed out on a potential Sh14 per litre price cut as the government opts to use diesel to cross-subsidise petrol and kerosene prices. The new fuel prices are effective from August 15, 2026, until September 14, 2026.

  • Diesel prices in Nairobi dropped by Sh5 to Sh217.86 per litre, instead of an expected Sh19.28 cut.
  • The Kenyan government, through the Energy and Petroleum Regulatory Authority (Epra), used diesel to prevent petrol prices from rising by at least Sh8.64 per litre.
  • This cross-subsidy comes after the government's subsidy kitty, used to cushion consumers since April, was nearly depleted due to global fuel price surges linked to the US-Iran war.

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