The transport sector strike is over, but a new fuel crisis is brewing. The government lowered diesel prices to appease the nation, but left oil marketers holding a multi-billion shilling bill.
The government’s decision pushed the subsidy on diesel to 24.57 shillings per litre, lowering prices to 232.86 shillings in Nairobi, a move that suspended the strike by transporters.
That quick fix costs an extra 2.7 billion shillings, pushing the total unpaid subsidy debt past 27 billion shillings. Marketers warn that a bigger subsidy just means a bigger, delayed debt they cannot afford to carry.
Because marketers must pay fuel taxes upfront to Kenya Pipeline before evacuating product, this delayed compensation has dried up their cash flows causing erratic fuel supplies across major retail stations.
With higher landed costs, smaller dealers are already shutting down. The public transit strike is paused, but oil marketers are now waiting with bated breath to see who will pay for the crisis.
