In Kenya, End of the Gasoline Subsidy

Kenya is removing the gasoline subsidy because it is unsustainable, according to President William Ruto.

Share:

Kenya is removing the gasoline subsidy because it is unsustainable, according to President William Ruto.

Inflationary surge in Kenya

Kenya, which is experiencing high inflation, was introducing subsidies to help the population. However, it would appear that these aids contribute to the upward pressure on inflation. Currently, the country, with a newly elected President, is facing inflationary challenges on fuel and food.

Kenyan President William Ruto is concerned that the subsidy will further drain the country’s coffers. Artificial shortages could occur despite subsidies. Furthermore, he believes that they lead to a number of abuses.

The Energy and Petroleum Regulatory Authority is setting new, higher prices for gasoline, diesel and kerosene. Thus, gasoline increased by 13%, diesel by 18% and kerosene by 16% compared to August. Subsidies remain exclusively for diesel and kerosene.

A progressive lifting

Kenya is facing accelerated inflation due to rising crude oil prices. This was 5% at the beginning of the year. As a result, the country will have to deal with the lack of funds to subsidize fuel costs.

For example, the Ministry of Finance said in June that if prices continued to rise, it would not be able to maintain subsidies. Thus, the Kenyan government is seeking to prevent the public debt from reaching unsustainable levels. This translates into a gradual lifting of subsidies.

According to Aly-Khan Satchu, economic analyst:

“The current government is between a rock and a hard place.”

It seems likely that further increases will raise inflation, which is at a five-year high in August. The choice between an inflationary shock and the lifting of subsidies is made gradually.

  • Populaires ​
United States selects Westinghouse and Radiant to test their nuclear microreactors
TotalEnergies sells 50% of its renewable assets in Portugal for €178.5mn
Rio Tinto: five strategic priorities to close a 40% valuation discount
EDF postpones restart of Flamanville EPR to August 13
Ardian completes Akuo takeover and installs Bruno Bensasson at the helm
Latin America’s six largest economies accelerate transition to renewables
Brazil, Mexico, Argentina, Colombia, Chile, and Peru significantly increase renewable electricity production, reaching nearly 70% of the regional electricity mix, according to a recent Wood Mackenzie study on Latin America's energy sector.
Canada funds 13 Indigenous energy projects with $40mn investment
The Canadian government announces an investment of more than $40mn to fund 13 energy projects led by Indigenous communities across the country, aiming to improve energy efficiency and increase local renewable energy use.
Germany extends electricity price aid to 2,200 companies
The German Ministry of Economy plans to significantly expand aid aimed at reducing industrial electricity costs, increasing eligible companies from 350 to 2,200, at an estimated cost of €4bn ($4.7bn).
Czech Republic hit by massive power outage disrupting the economy
A major electricity blackout paralyzed large parts of the Czech Republic, interrupting transport and essential networks, raising immediate economic concerns, and highlighting the vulnerability of energy infrastructures to unforeseen technical incidents.
France anticipates significant slowdown in emission reductions starting in 2025
French greenhouse gas emissions are expected to rise by 0.2% in the first quarter of 2025, indicating a global slowdown in reductions forecast for the full year, according to Citepa, an independent organisation responsible for national monitoring.
U.S. Senate Approves Accelerated End to Renewable Energy Tax Credits
The Republican budget bill passed by the U.S. Senate accelerates the phase-out of tax credits for renewable energies, favoring fossil fuels and raising economic concerns among solar and wind industry professionals.
Brazil: renewable energy curtailment to jump by 300% by 2035
Rapid growth in solar and wind capacities will lead to a significant rise in electricity curtailment in Brazil, as existing transmission infrastructure remains inadequate to handle this massive influx of energy, according to a recent study by consulting firm Wood Mackenzie.
South Korea reduces its dependence on fossil fuels below 50%
In April 2025, fossil fuels represented 49.5% of South Korea's electricity mix, dropping below the symbolic threshold of 50% for the first time, primarily due to a historic decline in coal-generated electricity production.
US Senate adopts tax neutrality for advanced biofuels
The US Senate Finance Committee modifies the '45Z' tax credit to standardize the tax treatment of renewable fuels, thereby encouraging advanced biofuel production starting October 2025.
Renewable energy: access improving, but financing still insufficient for Africa
According to the 2025 report on global energy access, despite notable progress in renewable energy, insufficient targeted financing continues to hinder electricity and clean cooking access, particularly in sub-Saharan Africa.
China and the United States improve their energy performance in an unstable global context
While advanced economies maintain global energy leadership, China and the United States have significantly progressed in the security and sustainability of their energy systems, according to the World Economic Forum's annual report.
Algeria and Angola strengthen energy cooperation at US–Africa summit
On the sidelines of the US–Africa summit in Luanda, Algiers and Luanda consolidate their energy collaboration to better exploit their oil, gas, and mining potential, targeting a common strategy in regional and international markets.
UK urged to accelerate electricity price reforms
The UK's Climate Change Committee is urging the government to quickly reduce electricity costs to facilitate the adoption of heat pumps and electric vehicles, judged too slow to achieve the set climate targets.
Brussels expands subsidies for low-carbon technologies and nuclear power
The European Commission will extend until the end of 2030 an expanded state-aid framework, allowing capitals to fund low-carbon technologies and nuclear power to preserve competitiveness against China and the United States.
Japan Faces Major Electricity Shortfall of 89 GW by 2050
Japan's grid operator forecasts an energy shortfall of up to 89 GW by 2050 due to rising demand from semiconductor manufacturing, electric vehicles, and artificial intelligence technologies.
EU Approves Targeted Energy Aid for Europe’s Heavy Industries
Energy-intensive European industries will be eligible for temporary state aid to mitigate high electricity prices, according to a new regulatory framework proposed by the European Commission under the "Clean Industrial Deal."
Mauritius launches international tender for floating power plant
Mauritius seeks international investors to swiftly build a floating power plant of around 100 MW, aiming to secure the national energy supply by January 2026 and address current production shortfalls.
Spain and Portugal Strengthen Networks Following April Blackout
Madrid announces immediate energy storage measures while Lisbon secures its electrical grid, responding to the historic outage that affected the entire Iberian Peninsula in late April.
Indonesia Commits 190 Billion USD to Expand Energy Capacity by 2034
Indonesia has unveiled its new national energy plan, projecting an increase of 69.5 GW in electricity capacity over ten years, largely funded by independent producers, to address rapidly rising domestic demand.
France: Moratorium on renewables; warning about immediate industrial impact
French Minister Agnès Pannier-Runacher condemns the parliamentary moratorium on new renewable energy installations, warning of the potential loss of 150,000 industrial jobs and increased energy dependence on foreign countries.

LEGAL

FOSSILS

POLICY

RENEWABLE

PLUS

© XMARKET PUBLISHING