Kenya: gasoline at its highest after the abandonment of the state subsidy

#Other countries : Fuel prices have jumped to record levels in Kenya with the announcement on Thursday of a drastic cut in state subsidies which could weigh a little more on the daily lives of the most disadvantaged strata.

Judging the policy of subsidized prices introduced by his predecessor for fuel and certain foodstuffs to be ineffective and too costly, the new Kenyan president, William Ruto, pledged to abandon these measures when he took office on Tuesday.

The Energy and Petroleum Products Regulatory Authority (EPRA) announced on Thursday the removal of the government subsidy to limit the price of gasoline at the pump and a drop in those for diesel and kerosene prices.

As a result, the price of a liter of gasoline has increased by 12%, to 179.30 shillings (about 1.50 euros), and those of diesel and kerosene have taken 20 and 25 shillings respectively, indicates the EPRA in a press release, specifying that the new rates apply until October 14.

The subsidized price policy was put in place in 2021 by President Uhuru Kenyatta to help a population hard hit by inflation.

>>> READ ALSO: Fuel shortage in Kenya: the boss of the French supplier Rubis expelled

Since then, Nairobi has spent 144 billion shillings (1.2 billion euros, or 86% of the country’s tourism revenue this year) to drive down fuel prices, according to official figures.

Kenya has the fastest growing economy in East Africa, but around a third of the country’s population lives below the international poverty line.

In August, inflation reached its highest level in almost five and a half years, at 8.5%.

For some economists, the rise in fuel prices is likely to have repercussions on those of transport in particular and, consequently, to further increase the cost of living for Kenyans.