Government to Further Reduce Diesel Prices as Energy Ministry, Manufacturers Agree on Measures to Lower Energy Costs

 By Gedion Nzyoki -

NAIROBI, Kenya, June 10, 2026 — The government has pledged to further reduce diesel prices in the next monthly fuel review and continue working with manufacturers to lower energy costs following a consultative meeting held on Wednesday at the Iconic Dusit Hotel between senior officials from the Ministry of Energy and Petroleum and representatives of the manufacturing sector.

Energy and Petroleum Cabinet Secretary Opiyo Wandayi speaking during a consultative meeting between the Kenya Association of Manufacturers (KAM) and power consumers. Photo: Kenya Power Care (Facebook)

Speaking during a press briefing after the meeting, Energy and Petroleum Cabinet Secretary Opiyo Wandayi said the government remains committed to ensuring affordable, reliable, and sustainable energy to support industries, create jobs, and strengthen Kenya's economic growth.

The former Ugunja Member of Parliament said discussions with stakeholders under the Kenya Association of Manufacturers (KAM) focused on three key priorities: adequacy of energy supply, reliability and quality of electricity, and affordability of energy.

"The government remains firmly committed to ensuring affordable, reliable and sustainable energy for our industries and their customers. Even in the face of continued uncertainty in global energy markets, our focus remains clear—protecting consumers, supporting productive sectors and maintaining the stability needed for our economy to continue growing," Wandayi said.

The Cabinet Secretary emphasized that continuous engagement between the government and industry players is essential in finding practical solutions to challenges facing businesses.

Energy CS Opiyo Wandayi and KAM representative Joyce Njogu being flagged off by other power consumers during a press briefing on Wednesday afternoon. Photo credit: Elijah Odanga.

He noted that the government is keenly aware of the impact energy costs have on competitiveness, investment, and livelihoods, adding that maintaining a stable and predictable business environment remains a top priority.

According to Wandayi, collaborative efforts with stakeholders are aimed at sustaining economic activity, safeguarding jobs, and creating conditions that enable businesses to expand and continue contributing to national development.

Among the initiatives highlighted was the Time-of-Use Tariff Programme, which encourages industries to shift operations to off-peak hours in exchange for lower electricity costs.

Government Promises Lower Diesel Prices

Addressing concerns over global energy market volatility, Wandayi said Kenya has maintained a stable supply of petroleum products through proactive planning and strategic interventions.

He revealed that fuel deliveries have already been secured through the end of July, helping shield the country from shortages and supply disruptions experienced in other markets.

The CS also pointed to recent efforts by the government to cushion households and businesses from rising energy costs, including the suspension of a proposed electricity tariff review.

He announced that electricity prices had declined during the June billing cycle by KSh0.2685 per kilowatt-hour, attributing the reduction to lower foreign exchange adjustment costs, reduced fuel energy charges, and increased hydropower generation.

"This reflects our commitment to ensuring that gains within the sector are shared directly with Kenyans," he said.

In a move expected to provide further relief to businesses and consumers, Wandayi said the government would ensure an additional reduction in diesel prices during the next monthly review.

"In line with the commitment made by His Excellency the President to the public transport sector and other industry players, the government will ensure a further reduction in diesel prices in the next monthly review," Wandayi said.

He noted that diesel remains a critical input for transportation, agriculture, manufacturing, and other sectors of the economy, meaning lower prices would ultimately reduce operational costs and ease the financial burden on Kenyan families.

"Recognising that diesel powers transport, agriculture, manufacturing and the wider economy, lower diesel prices ultimately translate into lower costs for businesses and provide greater relief for Kenyan families," he added.

Manufacturers Welcome Government Engagement

On her part, the Kenya Association of Manufactures representative Joyce Njogu, welcomed the government's willingness to engage manufacturers in dialogue, describing the partnership as crucial to creating a conducive business environment.

She said manufacturing remains one of the most important sources of productive employment and sustainable investment globally, underscoring the sector's role in driving economic growth.

"The Kenya Association of Manufacturers is very happy to have this partnership of dialogue with the government on creating a conducive business environment for manufacturers to thrive," Njogu said.

The KAM official revealed that discussions centered on the ease of doing business and the cost of energy, which manufacturers consider among the biggest challenges affecting competitiveness.

According to Njogu, both parties have agreed on a number of short-term interventions aimed at reducing electricity and fuel costs, with details expected to be released once a concrete implementation roadmap is finalized.

She added that KAM is also working with the government on long-term measures to develop a sustainable and competitive energy tariff framework, noting that while electricity costs remain relatively high, Kenya enjoys better reliability and quality of supply compared to some neighboring countries.

"We are aware that Kenya is more expensive than the region. We also recognize that we are working on quality and reliability, which are better in Kenya than in other countries in the region," she added.

Njogu stressed the importance of balancing affordability with reliability, saying uninterrupted power supply remains critical for industrial production and attracting investment.

She further emphasized that manufacturers view themselves as partners in finding solutions rather than assigning blame, adding that both the private sector and government are committed to developing economic models that support sustainable growth.

On matters of long-term energy security, Wandayi said the government is not only focused on addressing immediate challenges but is also investing in long-term energy security through the expansion of generation capacity, transmission infrastructure, and renewable energy projects.

He reiterated that the government's objective is to build a stable, affordable, and sustainable energy system capable of powering industries, creating employment opportunities, and improving livelihoods.

"Our message to Kenyans is one of confidence and hope," he said. "We will continue to engage openly, keep our commitments and take practical measures that protect consumers, support businesses and strengthen our economy."

The government reaffirmed its commitment to working closely with industry players to ensure affordable energy, calling the partnership essential to sustaining economic growth and protecting jobs.