In Kenya, End of the Gasoline Subsidy

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

Partagez:

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 ​
Global microgrid market to reach 191 billion dollars by 2033
Wood Mackenzie forecasts $1.35 trillion for CCUS and carbon credits markets
Google signs world’s first fusion energy purchase agreement
France Officially Launches Its First Floating Wind Farm in the Mediterranean
Brno rejects EDF lawsuit over Czech nuclear contract
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.
New European Battery Regulation Disrupts Europe’s Industrial Sector
The European battery regulation, fully effective from August 18, significantly alters industrial requirements related to electric cars and bicycles, imposing strict rules on recycling, supply chains, and transparency for companies.
European Parliament urges Brussels to act on energy grids
The European Parliament calls on the Commission to strengthen energy infrastructure and accelerate the implementation of the Clean Industrial Deal to enhance the continent's energy flexibility and security amid increased market volatility.
Europe Commits Major Investments to Electricity Grids and the Clean Industrial Deal
The European Commission unveils an ambitious plan to modernize electricity grids and introduces the Clean Industrial Deal, mobilizing hundreds of billions of euros to strengthen the continent's industrial and energy autonomy.
Wood Mackenzie highlights advantage of regulated utilities amid data centre boom
In the United States, regulated electric grid operators hold a decisive advantage in connecting new data centres to the grid, now representing 134 GW of projects, according to a Wood Mackenzie report published on June 19.
France sets renewable energy target of 200 TWh by 2030
The French National Assembly approves a specific target of 200 TWh renewable electricity production by 2030 within a legislative text extensively debated about the future national energy mix.
United States: emissions stagnate in 2024, uncertainty under Trump administration
In 2024, US CO₂ emissions remain stable at 5.1bn tonnes, as the Trump administration prepares hydrocarbon-friendly energy policies, raising questions about the future evolution of the American market.
France: Anticipated Energy Decree, National Assembly Denounces Democratic Risk
The early publication of France's energy decree triggers strong parliamentary reactions, as the government aims to rapidly secure investments in nuclear and other energy sectors.
Spain Blackout: Analysis of Causes and European Financing Plan Approved
Seven weeks after the major Iberian power outage, Spain identifies technical network failures, while the European Investment Bank approves major funding to strengthen the interconnection with France.
European Union Sets Precise Timeline for Russian Gas Import Ban
The European Union has announced a detailed schedule aiming to definitively halt Russian gas imports by the end of 2027, anticipating internal legal and commercial challenges to overcome.

LEGAL

FOSSILS

POLICY

RENEWABLE

PLUS

© XMARKET PUBLISHING

Welcome

Your subscription

Included in this subscription:

COMMUNICATE ON ENERGYNEWS