Ruto set aside Ksh21.5B for fuel stabilisation amid global oil market volatility
By Emmanuel Rono, June 23, 2026President William Ruto has announced that the government has set aside Ksh21.5 billion to cushion Kenyans from volatility in the global fuel market.
Speaking after signing the Finance Bill 2026 into law on Tuesday, June 23, 2026, Ruto said the funding will go directly into fuel stabilisation measures designed to absorb external price fluctuations that have in recent years driven up the cost of transport, food, and basic commodities.
The move is aimed at stabilising pump prices and protecting households and businesses from sudden shocks.
Establishment of East African Refinery
In addition to the short-term intervention, the Head of State revealed that the government is also laying groundwork for a long-term solution through the establishment of the East African Refinery, which he said will enhance regional fuel processing capacity and reduce reliance on imported refined petroleum products.
“To cushion Kenyans from volatility in the global fuel market, including disruptions arising from conflict in the Middle East, including in Iran, we have set aside Ksh 21.5 billion for fuel stabilisation and provided seed capital for the establishment of the East African Refinery as a mechanism for a long-term solution to challenges that face us in our fuel supply,” Ruto said.
According to Ruto, the government has allocated Ksh26.1 billion to rural electrification and national grid expansion, with a further Ksh3.7 billion directed towards power generation projects.
An additional Ksh3.2 billion will support alternative energy technologies aimed at diversifying Kenya’s energy mix.
“Reliable and affordable energy remains essential to economic growth and household welfare. We have, therefore, allocated Ksh 34.1 billion to the sector, including Ksh 26.1 billion for rural electrification and grid expansion, Kenya Shillings 3.7 billion for power generation, and Ksh 3.2 billion for alternative energy technologies, ” Ruto stated.