Kiharu Member of Parliament Ndindi Nyoro has sharply criticised the government over the recent spike in fuel prices, describing the official explanation as misleading and lacking in transparency.
Speaking on Tuesday, Nyoro questioned the justification provided by the Ministry of Energy, which linked the price hike to global oil prices. He noted that international oil prices were actually higher last year compared to current levels, suggesting that the latest increase is not being driven by global trends.
“The problem is not global prices—it’s excessive taxation and the securitisation of fuel levies. Over Sh80 per litre of petrol and Sh76 for other fuels are taxes and levies. That’s where the real burden is,” said Nyoro.
The legislator claimed that last year, the government introduced an additional Sh7 fuel levy at a time when global prices were falling. Instead of passing the benefits to consumers, he argued, the government used the levy to raise Sh175 billion in loans, using the tax as collateral.
According to Nyoro, this borrowing was done without parliamentary approval and is not reflected in the country’s official debt records, raising concerns about transparency and legality.
“How much has the government borrowed, from whom, and at what interest? What are the long-term implications? Future administrations are being denied the ability to make independent budgetary decisions because current revenues are already committed,” he said.
Nyoro warned that using public taxes as loan guarantees without parliamentary oversight could set a dangerous precedent.
“If fuel levies can be used as collateral without scrutiny, what’s to stop the same being done with VAT, PAYE, or NHIF deductions? This undermines Kenya’s financial sovereignty,” he added.
He called for immediate transparency from the National Treasury, a public audit of all off-the-books borrowing, and a broader national conversation on sustainable fiscal management.
The remarks came after the Energy and Petroleum Regulatory Authority (EPRA) announced new fuel prices in its latest monthly review.
Super petrol rose by Sh8.99 to retail at Sh186.31 per litre in Nairobi, diesel increased by Sh8.67 to Sh171.58, while kerosene went up by Sh9.65 to Sh156.58.
EPRA stated that the new prices, which took effect on July 15 and will remain in place until August 14, were calculated under the Petroleum Act 2019 and related tax laws.
The prices also include the 16% Value Added Tax as provided in the Finance Act 2023 and the revised excise duty rates adjusted for inflation, as outlined in the Tax Laws (Amendment) Act 2024 and Legal Notice No. 194 of 2020.
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