Kenya Rescinds Decision and Reinstates Partial Fuel Subsidy

The regulatory body for the energy sector in Kenya has confirmed that a small portion of fuel price support will be reinstated to ensure stability in retail prices over the next 30 days. This marks a reversal of a policy announced by the government that had sparked public outrage due to rising living costs. The Energy and Petroleum Regulatory Authority stated that the maximum retail price for a liter of gasoline will remain fixed at 194.68 Kenyan shillings (1.35 USD), thereby sparing consumers from an additional increase of 7.33 Kenyan shillings, which will be absorbed by the government through a price stabilization fund. Retail fuel prices are set in the middle of each month. The authority also mentioned that the government has provided small subsidies for kerosene and diesel. Kenyan President William Ruto, who took office in September, canceled the fuel and maize meal price subsidies implemented by the previous president, stating a preference for applying support to production rather than to consumption. The removal of subsidies, coupled with recent tax increases, has led to rising living costs and fueled protests against the government in recent months.