Kenya’s government cut diesel prices after deadly protests against hikes triggered by the Iran war. It follows a similar move by Comoros, which suspended fuel price rises over the weekend following demonstrations. Across Africa, countries reliant on fuel imports from the Middle East are scrambling to replenish energy resources.
Nairobi has been rocked by demonstrations, with four people killed and dozens injured. The transport union called off another planned strike after the government pledged to reduce diesel’s per-liter price, a cut that is set to cost the government nearly $21 million in lost revenues and which undermined a push by President William Ruto to plug the fiscal deficit ahead of next year’s elections.
Higher fuel prices also drove a sharp acceleration in South Africa’s consumer inflation; Goldman Sachs, in a note to clients, said it expects the country’s central bank to raise its main interest rate by 25 basis points next week.
