- President William Ruto’s defense of rising oil prices in Kenya has sparked regional tension, while Tanzania has responded quickly
- The April hike by the Energy and Petroleum Regulatory Authority (EPRA) raised the price of petrol to KSh 206.97 and diesel to KSh 206.84, making Kenya the most expensive market in East Africa
- Tanzania’s Minister of Works Abdallah Ulega disputed Ruto’s claims, insisting that his country’s 16,000km road network is comparable to Kenya’s and exposing gaps in his statistics
Recent statements by the President William Ruto of justifying the high price of oil in Kenya may fuel diplomatic tensions, with important stakeholders in the East African region coming forward to respond.
Source: Twitter
Before the government’s move to reduce the Value Added Tax (VAT) on fuel, EPRA had, on April 14, increased the price of fuel by up to 24.2 percent.
Petrol increased by 16.1 percent to be sold at KSh 206.97 per liter, diesel rose by 24.2 percent to KSh 206.84, while kerosene remained unchanged at KSh 152.78.
The reforms made Kenya lead in the oil price levels in East Africa. Rwanda followed, where petrol in Kigali cost more than KSh 203 and diesel around KSh 195.
Oil in the country Tanzania and Uganda were the cheapest, averaging KSh 189 for both types in Tanzania, while Ugandans pay about KSh 185 for petrol and KSh 174 for diesel.
Ethiopia emerged as the cheapest market, with pump prices around half of Kenya’s, at around KSh 109 for petrol and KSh 116 for diesel.
Ruto claimed that Kenya’s oil consumption is more complex than that of its East African neighbours.
Speaking at the Karen Africa Gospel Church (AGC) in Nairobi on Sunday, April 19, he said Kenya should be compared to middle-income countries instead of its regional neighbours.
He explained that the major development of road infrastructure in Kenya is highly dependent on oil.
According to him, the high price of oil helps finance the construction and maintenance of roads, unlike other East African countries.
The President noted that the asphalt road network in Kenya alone exceeds that of all East African countries combined.
He added that this situation necessarily pushes the price of oil to rise.
It didn’t take long before one of the countries in the region responded.
Tanzania’s Minister of Works Abdallah Ulega tried to reconfirm Ruto’s claims, saying that Kenya’s road network is not as the president presented it.
Ruto had claimed that Kenya has no competitor in East Africa, and that all countries put together cannot reach Kenya with a large road network.
Ulega pointed out that Tanzania is Kenya’s partner for development, and that its road network is close to that of Kenya, pointing out that Ruto’s claims were incorrect.
“It should be known that Tanzania is also a developing and low-middle-income country in the East African region. We are with our Kenyan neighbors. Secondly, Tanzania has a total of 16,000 kilometers of asphalt road network, rural and urban. If you add up the road network of Kenya and Tanzania, you get about 22,000 kilometers. Therefore, the figures given that all East African countries do not exceed Kenya in terms of road network are not true,” said Ulega.
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