“IMF Not Behind Fuel Price Hikes, Says Treasury CS Mbadi AMatatu Strike Persists

Treasury Cabinet Secretary John Mbadi has strongly denied accusations that the International Monetary Fund (IMF) is behind Kenya’s soaring fuel prices, clarifying that the global lender only provides macroeconomic advice and does not dictate domestic tax policies.

Speaking on Monday, May 18, 2026, as nationwide transport strikes escalated over the cost of fuel, Mbadi dismissed claims that the Bretton Woods institution ordered the government to hike fuel taxes as misleading and politically motivated.

IMF Offers Guidance, Not Directives

The Treasury CS explained that the IMF’s mandate is limited to helping member states navigate global economic shocks, rather than micro-managing national budgets or setting specific tax rates.

“I think people have not understood the IMF and the World Bank. The IMF advises member states on macroeconomic issues during possible economic shocks,” Mbadi stated. “They may recommend that countries prepare for the effects of rising global fuel prices, but they do not tell governments to reduce or increase VAT or introduce specific taxes.”

While Mbadi conceded that Kenya’s current economic situation is dire, he firmly emphasized that all final policy decisions are made independently by the state.

Mid-Cycle Cuts Fail to Calm Transport Strike

The controversy stems from the Energy and Petroleum Regulatory Authority’s (EPRA) May 14 review, which spiked super petrol by Sh16.65 per litre and diesel by a staggering Sh46.29 per litre, pushing the public transport sector into a frenzy over surging operational costs.

Under immense pressure from striking operators, the government issued an emergency mid-cycle revision effective from May 19 to June 14, 2026. The new directive knocked Sh10.06 per litre off diesel and increased kerosene by Sh38.60 per litre, while keeping petrol prices unchanged.

However, the transport sector flatly rejected the concession, branding the Sh10 reduction a drop in the ocean. Operators are demanding a full Sh46 per litre rollback on diesel to match the initial hike.

Gridlock Set to Continue

As a result of the failed consensus, the Association of Matatu Transport Owners confirmed that the transport boycott will continue indefinitely, threatening prolonged paralysis for commuters across the country.

“We did say that we are going to communicate here clearly and openly that we have not agreed, so that we can carry this conversation forward,” said Kushian Muchiri, the association’s chairperson. “We did not agree on anything. The strike is still on.”