At the National Prayer Breakfast in Nairobi, President Ruto Breaks His Silence on the Fuel Crisis Negotiations, the Diesel Subsidy, and Why Matatu Operators Ultimately Chose to Stand Down.
The fuel crisis that threatened to bring Kenya's public transport network to its knees has officially been put to rest — but President William Ruto wants the record set straight on exactly how that happened.
Speaking on Thursday, May 28, 2026, at the National Prayer Breakfast held at Safari Park Hotel in Nairobi, President Ruto addressed growing public speculation that his administration had pressured or manipulated matatu operators into calling off their planned nationwide strike. His response was direct, unapologetic, and grounded in the economics of Kenya's current fuel supply situation.
"I did not tell them to call off the strike. They looked at the facts. Many people said they were influenced this way or that way — maybe they were; by the facts of what the situation is," the President declared.
A Three-Hour Meeting That Changed Everything
At the heart of Ruto's address was a detailed account of a lengthy engagement with transport sector leaders — a meeting that lasted approximately three hours and covered far more ground than a simple plea to avoid industrial action.
According to the President, the discussions focused on three key areas:
- The current state of Kenya's fuel supply and availability across petrol stations nationwide
- Lessons drawn from the 2022 fuel crisis, during which Kenyans endured long, frustrating queues at petrol stations across the country as supply chains struggled to cope
- The government's subsidy policy and its direct impact on pump prices for consumers, transport operators, and businesses
Ruto revealed that earlier in his presidency, he had also engaged oil marketers to discuss the broader implications of the fuel subsidy framework on the economy — demonstrating that the fuel pricing conversation is one he has been having since he assumed office.
"I used the meeting to explain the importance of learning from past economic challenges and maintaining stability in fuel supply," he stated.
The Fuel Subsidy Breakdown: What Kenyans Are Not Paying
One of the most striking revelations from Ruto's address was the actual cost of diesel without government intervention — and what the subsidy means in practice for everyday Kenyans.
The President disclosed that:
- The actual market price of diesel should currently stand at Sh273 per litre
- The pump price of diesel, thanks to the government subsidy, is currently Sh232 per litre
- That means the government is absorbing a Sh41 per litre subsidy on diesel alone — a significant fiscal commitment at a time of global economic pressure
"Today, the government is subsidising fuel. The actual price of diesel should be Sh273, but it is Sh232," Ruto confirmed, adding that fuel is currently available at all petrol stations across the country — a notable contrast to the scarcity witnessed during the 2022 crisis.
For transport operators, farmers, manufacturers, and logistics companies that depend heavily on diesel to run their operations, these numbers are not abstract — they represent the difference between a sustainable business and one operating at a loss.
The June-July Promise: Diesel to Drop by Another Sh10
Beyond defending the current subsidy, President Ruto also announced a concrete commitment that gave transport operators a further reason to stand down — a Sh10 per litre reduction in the price of diesel to be effected during the June-July 2026 fuel price review by the Energy and Petroleum Regulatory Authority (EPRA).
This latest reduction, when implemented, will bring the cost of diesel in Nairobi down to approximately Sh222.86 per litre — providing meaningful relief to:
- Matatu and bus operators facing rising operational costs
- Long-distance truck and logistics companies moving goods across the country
- Farmers who rely on diesel-powered machinery during planting and harvesting seasons
- Manufacturers whose production costs are directly tied to fuel prices
What Triggered the Crisis: The May 14 EPRA Review
To fully understand why Kenya's matatu operators reached the point of a planned strike, it is essential to revisit the fuel price review that ignited the crisis.
On May 14, 2026, EPRA announced a sweeping upward revision of fuel prices that sent shockwaves through the transport and logistics sectors. The changes saw:
- Super Petrol increase by Sh16.65 per litre, pushing the Nairobi pump price to Sh214.25
- Diesel increase by a staggering Sh46.29 per litre, raising the Nairobi pump price to Sh242.92
The diesel hike in particular was described by transport operators as catastrophic. Matatu and bus operators, whose vehicles run almost exclusively on diesel, warned that the increase made running their routes economically unviable — and that the cost would ultimately be passed on to Kenyan commuters through higher fares.
The threat of a nationwide matatu strike loomed large, and for a brief period, the industrial action caused public transport services to grind to a near standstill in several parts of the country.
The Strike That Was Suspended — Then Officially Called Off
Following the initial disruption, matatu operators suspended their strike for seven days to allow space for negotiations with the government. Those talks, which eventually culminated in Ruto's engagement with transport leaders, proved decisive.
On May 22, 2026, speaking from State House Mombasa, President Ruto formally announced the outcome of the consultations — including the upcoming diesel price reduction — as the government's show of good faith toward the transport sector.
Albert Karakacha, National Chairman of the Matatu Owners Association (MOA), then made the announcement that millions of Kenyan commuters had been waiting for.
"We have called off the strike. We had suspended the strike, but we have called it off. We will not have a strike next week; we are going to work," Karakacha declared.
He thanked the government for the measures taken to stabilise fuel prices and pledged the transport sector's full cooperation in efforts to protect livelihoods and sustain economic activity across the country.
Sakaja's Role: The Nairobi Governor Steps Up
The resolution of the crisis was not solely a product of State House diplomacy. Karakacha also specifically acknowledged Nairobi Governor Johnson Sakaja for the role he played as a mediator between transport operators and the national government during the height of the standoff.
Given that Nairobi is Kenya's commercial and transport hub — and the city where the strike's impact was most acutely felt — Sakaja's intervention proved critical in preventing a prolonged breakdown in the capital's public transport network.
"We know that the county of Nairobi lost a lot of money, and we agreed with him that we have to work together to make sure that everything is going to work," Karakacha said.
He added that the engagement with both the national government and the county government had helped resolve a number of longstanding issues in the transport sector that had been pending for an extended period.
Ruto's Message: Decisions Informed by Facts, Not Pressure
At the core of President Ruto's address on Thursday was a broader message about how his government engages with stakeholders — through transparent sharing of data, honest conversations about economic realities, and a willingness to sit down for difficult, lengthy discussions rather than issuing directives.
Whether one agrees with the government's handling of the fuel pricing crisis or not, the outcome — a strike averted, diesel prices stabilised, and a further reduction on the horizon — represents a resolution that, for now, has restored calm to Kenya's roads and commuter routes.
As Ruto put it: "When we finished, they told me, Mr President, we are going to call off the strike."
The facts, it seems, spoke for themselves.
What This Means Going Forward
The fuel subsidy debate is far from over. Kenya, like many countries across the Global South, continues to navigate the tension between subsidising essential commodities to protect citizens and the long-term fiscal sustainability of such interventions. The government's ability to maintain the current diesel subsidy — and deliver on the promised June-July reduction — will be closely watched by transport operators, economists, and ordinary Kenyans alike.
For now, the matatus are back on the road. The buses are running. And Kenya's economy, which depends so heavily on the free movement of people and goods, has been given a much-needed reprieve.
This story will continue to develop as the June-July EPRA fuel price review approaches. Stay tuned for updates.