Kenya scrapped a subsidy on petrol a day after new President William Ruto said subsidies were unsustainable, in a move that could add to upward pressure on inflation.
Some of the key challenges the new president faces include bringing down the high cost of fuel and food in East Africa's most dominant economy, while grappling with subsidy measures that policymakers warn could empty the country's coffers.
Late on Wednesday, the Energy and Petroleum Regulatory Authority set new, higher fuel prices for petrol, diesel and kerosene, which is commonly used for cooking by many households.The regulator removed the subsidy on petrol, but retained it on both diesel and kerosene, saying those prices could have shot up even further.
Like in other parts of the world, Kenyan inflation has accelerated, mainly due to the knock-on effects of a jump in crude oil prices. It stood at around 5% at the start of 2022.
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