- EPRA director general Edward Mwirigi Kinyua disclosed the massive fuel subsidy figure before a Senate committee
- The Petroleum Development Levy is at the centre of Kenya's strategy to shield consumers from global oil price swings
- Senators grilled EPRA officials over the long-term financial sustainability of the stabilisation framework
TUKO.co.ke journalist Japhet Ruto has over eight years of experience in financial, business, and technology reporting, offering insights into Kenyan and global economic trends.
Kenya's energy regulator has revealed that the government channelled KSh 29.4 billion towards shielding ordinary consumers from volatile international oil prices during the current financial year, underscoring the significant fiscal cost of keeping pump prices in check.
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Energy and Petroleum Regulatory Authority (EPRA) director general Edward Mwirigi Kinyua made the disclosure on Friday, 23 October, when he appeared before the Senate Standing Committee on Energy, which was sitting in Mombasa County.
Kinyua outlined how the Petroleum Development Levy (PDL) has been deployed as the primary instrument for cushioning Kenyans from sharp increases in petroleum costs driven by global market movements.
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"During the engagement, the DG highlighted the implementation of the fuel price stabilisation mechanism, through which approximately KSh 29.4 billion was disbursed during the 2025/2026 financial year to cushion consumers against increases in petroleum prices," EPRA stated on X.
What else featured in the discussions?
Beyond the headline figure, senators and EPRA officials examined the broader question of whether the stabilisation framework can remain financially viable over time.
Discussions centred on how available resources are being managed, what additional funding may be required going forward, and how to strike the right balance between protecting consumers at the pump and maintaining a reliable, uninterrupted supply of petroleum products across the country.
The Mombasa session also served as a platform for EPRA to reaffirm its regulatory mandate, with Kinyua stressing the authority's commitment to transparent and equitable petroleum pricing that holds the interests of consumers and industry stakeholders in equal measure.
EPRA said it "remains committed to the effective implementation of the petroleum pricing framework, safeguarding consumer interests and supporting a stable, competitive and sustainable petroleum sector."
Fuel prices remain a politically sensitive issue in Kenya, where the cost of petrol and diesel directly influences the price of food, public transport and manufactured goods for millions of households.
What are the current fuel prices in Kenya?
As previously reported, we highlighted facts about EPRA’s October fuel price increases, including the new pump prices in Nairobi and the regulator’s explanation for the sharp rise.
After the latest adjustment, a litre of super petrol retails at KSh 226.96 in Nairobi, diesel costs KSh 227.76 and kerosene KSh 219.87.
The increases came as Kiharu MP Ndindi Nyoro warned the regulator against raising prices and accused powerful interests of profiting from the fuel crisis.
Source: TUKO.co.ke