Kenyan public transport operators have cancelled a planned strike scheduled for next week after President William Ruto announced a further reduction in diesel prices of more than 4%.

The operators had earlier staged a two-day strike this week in protest against rising fuel costs, triggered by global oil price pressures linked to tensions involving Iran.

The shutdown paralysed economic activity in Nairobi and escalated into violent clashes between protesters and police, leaving four people dead and around 30 others injured.

In a televised address on Friday, Ruto said the government would reduce diesel prices by 10 Kenyan shillings (about $0.0772) per litre in the June–July pricing cycle to ease pressure on consumers.

Kenya’s fuel regulator, which sets monthly ceiling prices for petrol stations, had previously increased diesel prices by 23.5% to 242.92 shillings per litre for May–June, before issuing a 10-shilling reduction earlier in the week following the strike action.

Transport sector leaders, who appeared alongside the president during the announcement, confirmed they would call off the planned strike following the additional price cut.

Ruto said the government has already spent about 28.1 billion shillings between April and June to subsidise fuel prices, noting that the latest reduction would further strain already tight public finances. Kenya’s debt servicing costs have risen sharply, reaching 71.2% of ordinary revenue in the 2024/25 financial year, up from 50% four years ago.

The president, who faces re-election in 2027, has been under pressure over the rising cost of living, with previous nationwide protests in 2024 forcing the withdrawal of proposed tax increases worth $2.7 billion.

He also said Kenya had been protected from severe global oil shocks through government-to-government fuel supply agreements signed in 2023 with Middle Eastern suppliers, which he said ensure stable fuel availability despite global disruptions.