Kenya Releases Six Billion Shillings in Fuel Subsidies Ahead of Price Review
Nairobi, 14 May 2026
The Kenyan government has disbursed over 6 billion shillings to oil marketers as subsidies for April’s fuel price stabilisation, just one day before today’s monthly pump price review. Without government intervention, petrol prices are expected to surge significantly due to increased import costs. The subsidy breakdown reveals diesel received the highest support at 23.92 shillings per litre, followed by kerosene at 96.56 shillings per litre, whilst petrol was subsidised by 4.68 shillings per litre. Three major importers under the Government-to-Government arrangement received the bulk of payments, with One Petroleum leading at 2.3 billion shillings. This financial intervention directly impacts transportation costs and living expenses nationwide.
Regulatory Framework and Distribution Mechanism
The Energy and Petroleum Regulatory Authority (EPRA) coordinated the subsidy distribution through a formal letter dated 13 May 2026, addressed to Energy and Petroleum Cabinet Secretary Opiyo Wandayi [1]. EPRA Acting Director General Dr Joseph Oketch outlined how the subsidies covered petroleum products imported during the pricing cycle from 15 April to 14 May 2026 [1]. The regulatory authority provided detailed breakdowns for both the three major importers operating under the Government-to-Government arrangement and individual oil marketing companies across Kenya [1].
Subsidy Allocation Across Fuel Types
The government intervention targeted three primary fuel categories with varying subsidy levels reflecting different market pressures. Super petrol received 951.269 million shillings in total subsidies, whilst diesel commanded the largest allocation at 4.873 billion shillings [1]. Illuminating kerosene, crucial for rural households, received 199.738 million shillings in support [1]. These figures demonstrate the government’s recognition that diesel price stability remains critical for transportation and logistics networks that underpin Kenya’s economy.
Major Beneficiaries Under Government-to-Government Programme
Three importers operating under the Government-to-Government arrangement received substantial payments totalling 6.043 billion shillings [1]. One Petroleum Ltd emerged as the largest recipient with 2.295 billion shillings, followed closely by Gulf Energy at 1.884 billion shillings and Be Energy Ltd receiving 1.863 billion shillings [1]. This distribution reflects the varying volumes these companies imported during the April-May pricing cycle and their respective market shares in Kenya’s petroleum sector.
Oil Marketing Companies’ Share and Regional Impact
Among oil marketing companies, Vivo Energy secured the highest subsidy payment of 1.475 billion shillings, with TotalEnergies following at 737.575 million shillings [1]. Rubis Energy received 534.757 million shillings, whilst smaller operators like Galana Energies and OLA obtained 328.977 million shillings and 223.269 million shillings respectively [1]. For refugee communities in Kakuma and Kalobeyei camps in Turkana County, these subsidies help maintain affordable transportation costs for essential goods delivery [GPT]. The stabilised fuel prices particularly benefit both host communities and refugees who depend on trucked supplies from Nairobi and Mombasa, as transport operators can maintain competitive rates without passing increased fuel costs to consumers [GPT].