Kenya cuts diesel KSh 10 per litre

Kenya’s government cut diesel prices by KSh10.06 per litre on May 19 after a nationwide matatu strike disrupted transport in Nairobi and other towns and pushed officials into emergency talks with operators. The revised pump prices were issued by the Energy and Petroleum Regulatory Authority, or EPRA, days after the regulator’s May 14 review had raised diesel by KSh46.29 per litre in Nairobi. Transport leaders said the earlier increase had made operations unsustainable, and the strike left commuters walking long distances and paying higher fares on the few routes that stayed open. Officials then coupled the diesel cut with promises of further negotiations and possible tax interventions. ### How big was the diesel cut, and when did it take effect? EPRA said its revised maximum retail prices took effect from May 19 and will remain in force through June 14. The regulator’s earlier May 14 pricing cycle had set diesel in Nairobi at KSh242.92 per litre, while the revised schedule lowered it by KSh10.06. The revised move did not reverse the full earlier increase. Deputy President Kithure Kindiki said on May 19 that diesel had been reduced by “Sh10 per litre” after talks with transport stakeholders, describing the move as an immediate step while broader discussions continued. ### Why did the government change course so quickly? (epra.go.ke) A nationwide strike by matatu operators and other transport players on May 18 forced the issue. Eastleigh Voice reported that the stoppage paralysed movement in several parts of the country, while The Star said commuters endured long walks to work, inflated fares and business disruption. (the-star.co.ke) The government linked the fuel shock to international oil-market pressure. Kindiki said the rise in pump prices reflected higher fuel, freight, insurance and logistics costs tied to the conflict involving the United States, Israel and Iran. He also said the government was using subsidies and tax measures to cushion consumers. (eastleighvoice.co.ke) ### What did matatu operators want instead? Transport leaders said the KSh10 cut did not meet their demands. Capital FM reported that operators had sought a reduction of between KSh30 and KSh46 per litre, and some publicly rejected the government’s first announcement of a deal during tense scenes at Transcom House on May 18. (the-star.co.ke) Kennedy Kaunda, identified by Capital FM as a transport stakeholder representative, later said operators had agreed to suspend the strike. He said the suspension would give negotiations another chance, but warned that industrial action could resume if there was no agreement within seven days. ### Where do tax relief proposals fit into this dispute? (capitalfm.co.ke) Kenyan political figures and transport stakeholders pushed for tax relief as fuel prices climbed. Eastleigh Voice reported on May 18 that former Chief Justice David Maraga called on Parliament to exempt fuel products from VAT and temporarily remove fuel levies, while former Vice President Stephen Kalonzo Musyoka demanded urgent intervention and direct talks with the Transport Sector Alliance. (capitalfm.co.ke) Kindiki said the government had already reduced VAT on fuel from 16% and spent KSh12 billion over two months to stabilise prices. That statement did not set out a new law or formal tax package, but it placed tax intervention at the center of the government’s response as talks continued. ### What happens next, and what should readers watch? (eastleighvoice.co.ke) The one-week suspension announced on May 19 created a short deadline for negotiations between government officials and transport operators. Capital FM said operators reserved the right to resume the strike if talks failed within seven days, while EPRA’s revised pricing notice remains in force until June 14. (the-star.co.ke) Any next step is likely to come from two places: formal government talks with the transport sector and EPRA’s next monthly pricing cycle. For now, the verified change is the KSh10.06 diesel reduction effective May 19, alongside a temporary pause in the strike and continued pressure for broader tax relief. (eastleighvoice.co.ke) (capitalfm.co.ke)