Gachagua Hits Back At Rutos Defense Of Fuel Price Hike
The political landscape in Kenya has reached a boiling point following a historic spike in fuel prices. Former Deputy President Rigathi Gachagua, now leading the Democracy for Citizens Party (DCP), has launched a scathing attack on President William Ruto, alleging that the President is personally profiting from the misery of Kenyans.
Here is an overview of the situation and the specific allegations made by Gachagua.
The Allegation: A “Billion-Shilling Windfall”
In a series of explosive statements issued in mid-April 2026, Gachagua accused the Ruto administration of orchestrating a fuel scandal through the Government-to-Government (G-to-G) oil deal.
The Key Claims:
- The “5 Shilling” Kickback: Gachagua alleges that President Ruto stands to gain approximately KSh 5 per litre of fuel consumed in the country.
- Massive Profits: Based on national consumption levels, Gachagua claims this translates to roughly KSh 2.5 billion per month, and as much as KSh 30 billion since the G-to-G arrangement began.
- Proxy Companies: The former DP has publicly named companies like Gulf Energy and Stabex International, alleging they act as intermediaries that facilitate these irregular gains for the executive.
”Kenyans are paying for a system where public policy and private gain have been dangerously intertwined.” — Rigathi Gachagua, April 15, 2026.
Context: The April 2026 Price Shock
The accusations come on the heels of one of the largest single-month fuel price increases in Kenya’s history. On April 14, 2026, the Energy and Petroleum Regulatory Authority (EPRA) announced:
- Super Petrol: Increased by KSh 28.69 (Retailing at KSh 206.97).
- Diesel: Increased by KSh 40.30 (Retailing at an all-time high of KSh 206.84).
While the government attributes these hikes to a global supply shock caused by Middle East tensions—specifically disruptions in the Strait of Hormuz—Gachagua argues the “landed cost” is being artificially inflated by domestic political interests.
The Government’s Defense and Response
President Ruto and his allies have dismissed Gachagua’s claims as “political jealousy” and “malice.” To counter the public outcry, the President took the following steps:
- VAT Reduction: Assented to the VAT Amendment Bill 2026, which temporarily slashes VAT on fuel from 16% to 8% for three months.
- Price Stabilization: Deployed KSh 6.2 billion from the Petroleum Development Levy (PDL) to prevent petrol from hitting even higher marks (estimates suggested petrol could have reached KSh 260 without intervention).
- Legal Action: Private companies mentioned in Gachagua’s speeches, such as Stabex, have sued him for defamation, demanding a public retraction
