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National Treasury CS John Mbadi during signing of Technical Assistance Implementation Agreements between Kenya and Agence Française de Développement (AFD) on May 13, 2026. [Jenipher Wachie, Standard].

National Treasury Cabinet Secretary John Mbadi has dismissed the ongoing nationwide matatu strike as unnecessary, warning that Kenya risks worsening its economic situation if stakeholders respond to rising fuel prices through “emotional decisions” instead of structured dialogue.

Speaking during a television interview on Monday, Mbadi said the industrial action by transport operators over soaring fuel prices could further strain an already fragile economy and limit the government’s ability to cushion consumers from the impact of rising costs.

“We must debate and discuss soberly. The economy is going to be hit further, and when the economy is hit further, we have even fewer resources to subsidize prices,” Mbadi said.

He described the country’s current fuel crisis as a “catch-22 situation,” arguing that rising global oil prices were forcing difficult fiscal choices on the government while simultaneously increasing pressure on households and businesses.

“That kind of subsidy that people want becomes difficult. It is a catch-22 situation, and we must build consensus on stabilization measures instead of acting emotionally,” he added.

The nationwide matatu strike, which began on Monday, has paralysed transport in several counties, disrupting movement in major towns and leaving thousands of commuters stranded or forced to walk long distances to work.

The protests followed the latest fuel price review by the Energy and Petroleum Regulatory Authority (EPRA), which pushed diesel prices in Nairobi to a record Sh242.92 per litre, while super petrol rose to Sh214.25 per litre.

Under the new pricing, diesel increased by Sh46.29 per litre, while petrol rose by Sh16.65, sparking outrage among transport operators who argue that the rising costs have made business operations unsustainable.

Mbadi, however, defended the government’s response to the crisis, saying several interventions had already been implemented to shield consumers from the full impact of global oil market shocks.

“If we were to leave the prices without intervention, diesel would be retailing at not less than Sh350. The government has intervened and done a lot,” he said.

The Treasury CS said the government had spent more than Sh22 billion over the past two months on fuel stabilization measures, including subsidies and tax adjustments.

“This is not something to politicize. We should explain to people based on facts and find a solution instead of blanket criticism,” he added.

Mbadi attributed the sharp increase in fuel prices to global market disruptions, including geopolitical tensions affecting oil-producing regions and rising freight costs.

He said Kenya’s government-to-government fuel import arrangement had helped protect consumers from even higher prices compared to other countries.

However, he acknowledged that the broader economic outlook remained under pressure, warning that the country could experience higher inflation, instability in the exchange rate, and reduced fiscal space.

“The general economic indicators will not be performing as projected.

There may be pressure on inflation, interest rates, and forex reserves,” he said.

The strike has already disrupted transport, education, and business operations across the country, with commuters in Nairobi and other towns forced to either walk long distances or pay sharply increased fares.

Mbadi urged all stakeholders to avoid politicising the crisis and instead focus on dialogue and consensus-building.

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