The fuel subsidy that has rendered Kenyans to higher transportation and production costs, is set to be dropped, as indicated by President William Ruto.
During his inauguration speech, the head of state reiterated that the economy cannot sustain consumption subsidies.
This pointed to a policy shift that may have food and fuel prices be determined by the market forces of supply and demand.
This was despite acknowledging that these costs need an urgent and decisive resolution.
The removal of the fuel cost stabilization programme could see pump prices shoot above Sh200 per liter for the first time.
This is as the cost of a two-kilogramme packet of staple maize flour meal has remained at Sh200 on average after a failed subsidy deal with millers in July.