Kiharu Member of Parliament Ndindi Nyoro has outlined a series of proposals that he believes could reduce fuel prices by about Ksh.27 per litre, at a time when many Kenyans are struggling with the rising cost of petroleum products.
In a press statement issued on Wednesday, the legislator criticised the government’s handling of the situation, describing the recent increase in pump prices as unacceptable and avoidable.
Nyoro questioned why Kenyans are paying more for fuel now even though global oil prices are lower than they were in 2022.
He pointed out that in May 2022, when prices exceeded 115 dollars per barrel, local pump prices remained below Ksh.160 per litre. He argued that the current situation does not reflect global trends and called for immediate action to align local prices with international market conditions.
He also raised concern about the lack of clear communication from the government regarding how fuel prices are determined.
According to him, this uncertainty could lead to hoarding within the supply chain, as dealers may hesitate to release fuel without understanding the pricing structure. He warned that such confusion could worsen the crisis and disrupt supply.
The MP further criticised the current subsidy allocation of Ksh.6.5 billion, terming it insufficient to cushion consumers.
He urged the government to increase the subsidy to at least Ksh.10 billion from the Fuel Stabilisation Fund, which he claimed holds about Ksh.20 billion. In his view, a stronger subsidy intervention would help bring down prices more effectively in the short term.
On taxation, Nyoro dismissed the proposed VAT reduction as inadequate and called for a temporary exemption of fuel products from VAT.
He also proposed the removal of the Ksh.7 fuel levy introduced in 2024. By combining these measures with an increase in subsidies, he argued that the total reduction at the pump could reach Ksh.27 per litre.
He broke down the estimate by attributing Ksh.7 to the levy removal, about Ksh.8 from VAT adjustments, and roughly Ksh.12 from additional subsidies.
Nyoro also questioned the transparency of the government-to-government fuel importation framework, claiming that it lacks accountability and benefits a few individuals at the expense of the public.
He insisted that immediate action is needed, warning that any delays in revising fuel prices would continue to put pressure on the economy.
President William Ruto defended the recent fuel price increases, stating that the government had already spent Ksh.6.5 billion to cushion consumers.
He announced that VAT on fuel would be reduced from 16 percent to 8 percent for three months as part of efforts to ease the burden on Kenyans.
