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Kenyan public transport operators end their strike after the government reduces diesel prices

Kenyan public transportation operators have called off a strike that was scheduled to begin next week after President William Ruto announced Friday the government will cut diesel prices by over 4%.

This week, public transporters went on a two-day walkout to protest the increase in fuel prices following the Iran War. This brought the economy to a halt in Nairobi's capital and led to clashes between protesters, police and other citizens that resulted in four deaths and 30 injuries.

In a televised address?on Friday?, Ruto stated that he had ordered the price of diesel to be reduced by 10 Kenyan Shillings ($0.0772)?per litre during the June-July cycle in order to provide further relief to consumers.

Last week, the government increased diesel prices for the May-June price cycle by 23.5%, to 242.92 "Kenyan" shillings per litre. However, they were reduced by 10 shillings by Monday, in response to the strikes.

After Ruto announced the new cut, the leaders of the transport industry, who were standing with him as he addressed Kenyans, called off the strike for next week.

Fuel price cut to deal further harms public finances

Ruto stated that his government spent a minimum of?28,1 billion Kenyan shillings between April and June to reduce fuel costs.

Kenya's already strained finances will be further impacted by the additional cut. Kenya's total debt service reached 71.2% in fiscal 2024/25, up from 50% four years earlier.

Ruto is a re-election candidate in 2027 and has been the target of several protests over high living costs. In 2024, nationwide protests forced him to pull $2.7 billion of proposed tax hikes.

He nevertheless said Kenya had been shielded from the worst of surging global crude prices by government-to-government fuel supply deals ?his government first struck with Middle ?Eastern governments in 2023.

"Through the government-to-government fuel ?supply framework, we have secured guaranteed fuel supplies, despite global supply chain disruptions, ensuring uninterrupted fuel supply availability across the country," he said.

(source: Reuters)