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Fuel price riots threaten East African economies

Financial Times Companies •
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Rising diesel and petrol prices have ignited unrest across East Africa. In Kenya, motorists clashed with police after the government lifted a fuel subsidy, prompting looting at stations. Simultaneously, the island nation of Comoros saw street fights erupt as queues stretched for hours, while Mozambique workers staged strikes demanding wage relief.

The price spikes stem from a combination of global crude hikes and regional supply bottlenecks, forcing governments to absorb higher import bills. Kenya’s budget, already strained by debt servicing, now faces a fiscal gap estimated at $1.2 billion this year, according to ministry officials. In Mozambique, the transport sector accounts for roughly 15% of GDP, so prolonged fuel shortages could choke trade flows.

Businesses dependent on logistics are scrambling for alternatives, with some firms turning to diesel generators despite higher operating costs. Consumer confidence is slipping as households allocate a larger share of income to transport, risking reduced spending on non‑essential goods. Policymakers now confront a trade‑off between subsidising fuel to calm unrest and preserving fiscal stability.

International donors have warned that prolonged unrest could deter foreign investment, a vital source of capital for infrastructure projects in the region. Aid agencies are meanwhile preparing emergency fuel kits for vulnerable communities, underscoring the humanitarian and health dimension of this crisis across the continent.