- President William Ruto has defended the high cost of fuel in Kenya amid public outcry following the recent increase
- Ruto attributed the high fuel costs and road maintenance taxes to Kenya’s high infrastructure standards
- Some Kenyans had questioned why fuel prices in Tanzania and Uganda are lower compared to Kenya
Nairobi – President William Ruto has emerged to strongly defend the high cost of fuel in Kenya amid complaints from a large number of Kenyans.
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Speaking at a church service in Karen on Sunday, April 19, the president said that the recent increase in oil prices is in line with Kenya’s status as a low and middle income country (LMIC).
Why is the price of oil higher in Kenya than Uganda In his speech, Ruto explained why the price of oil is high in Kenya compared to the countries of the East African Community.
According to the head of state, Kenya cannot be compared to its neighbours, who are ranked among the least developed countries.
“I know many people in Kenya continue to ask why sometimes oil prices are different in Kenya compared to our neighbors. Kenya is a middle-income country. Our neighbors are least developed countries. There is a big difference. If you want to compare Kenya fairly with others, compare Kenya with other middle-income countries,” Ruto stressed that Kenya should only be compared with countries in the middle-income group.
What is contributing to high fuel prices in Kenya?
Ruto attributed the high price of fuel to road maintenance tax, explaining that a large part of the price is used to fund road maintenance.
The President explained that the 20,000 kilometers of paved roads in Kenya exceeds the combined network of all other East African countries, including Uganda and Tanzania.
The head of state explained that fuel taxes are earmarked for transport infrastructure, which strengthens the economy by improving connectivity, trade and mobility.
“Kenyans should understand that we are currently maintaining more than 20,000 kilometers of asphalt roads across the country and we have another 6,000 kilometers under construction,” he said.
How can the government reduce the price of oil by KSh 27?
As previously reported, when the Energy and Petroleum Regulatory Authority (EPRA) announced new fuel prices on April 14, Kenya was seen as the country where consumers pay the most for fuel in the East African region.
The prices announced by EPRA were higher compared to Tanzania, Uganda and Rwanda.
On April 15, Kiharu Member of Parliament Ndindi Nyoro criticized the recent increase in fuel prices, especially KSh 28.69 for petrol and KSh 40.30 for diesel.
The MP for Kiharu, referring to the consumption of 400 million liters of fuel per month in the country, called for a review of fuel prices.
He asked for the removal of the KSh 7 fuel tax set for 2024 and a 5% reduction in VAT, which he estimates will reduce prices by KSh 8.
Nyoro suggested that the government use KSh 5 billion from the Fuel Price Stimulation Fund, which he claims will save KSh 12 billion more.
He said that these measures will reduce the price of fuel by a total of KSh 27, thus reducing the burden of high fuel costs for Kenyans.
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