The government plans to start a diesel price stabilisation fund, a senior energy ministry official said, the first attempt to reduce volatility in the price of the widely used fuel.
Motorists will pay an extra Sh 5 per litre of fuel at the pump, which will go towards stabilisation of the diesel price in the future, said Andrew Kamau, the principal secretary in the energy ministry.
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"When the prices go beyond a certain limit, you will get that money back. It will cover diesel for the time being," he told Reuters.
The price point at which the stabiliser will kick in will be set out in rules to be published by the government "imminently", he said.
Diesel is the most consumed fuel in the economy.
"It transports goods, it transports the majority of people of this country. This is to cushion all of us," Kamau said.