Mambomseto.co.ke has exclusively learnt that Kenyans are likely to experience a surge in fuel prices, despite the Kenya shilling’s continuous appreciation against the US dollar. Currently, the Kenyan shilling is trading at Kshs 127, nearly where it stood when Uhuru Kenyatta, the immediate and 4th President, left office in 2022, at Kshs 125. The media outlet cited the Central Bank of Kenya (CBK) stating that global fuel prices have escalated.
According to the survey findings, the combination of reduced inflation and a stronger shilling has resulted in a lower cost of living, potentially boosting local investment capacity.
The report also hints at a probable decrease in energy prices, supported by the base effect and reduced transportation costs.
However, these revelations come in the wake of recent allegations by opposition leader Hon Raila Odinga during a fiery press conference. Odinga accused government-affiliated cartels of siphoning at least Kshs 40 per liter of petrol purchased by Kenyan consumers.
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Comparing fuel prices, as of November last year, diesel, petrol, and kerosene in Tanzania were priced at Kshs 167, Kshs 170, and Kshs 150 respectively, whereas in Kenya, the prices had surpassed the Kshs 200 mark.
The potential increase in fuel prices could have a significant impact on various sectors of the Kenyan economy. Transportation costs may rise, affecting the prices of goods and services across the board. Additionally, higher fuel prices could lead to increased inflation, putting pressure on consumers’ purchasing power.
It remains to be seen how the government will address these concerns and whether any measures will be taken to mitigate the impact of rising fuel prices on the populace. Public outcry and pressure on policymakers may result in interventions aimed at stabilizing fuel costs and ensuring the welfare of Kenyan citizens.
In conclusion, while the Kenyan economy has shown signs of resilience with a strengthening currency and reduced inflation, the looming increase in fuel prices poses challenges that must be carefully navigated to maintain economic stability and protect the interests of the people.
