Treasury Cabinet Secretary John Mbadi has assured that the Government is considering fresh interventions to cushion Kenyans from soaring fuel prices, as the cost of petroleum products continues to pile pressure on households and businesses across the country.
Mbadi said the government was exploring additional measures, including further tax adjustments and fuel stabilisation programmes, to ease the burden on consumers.
He revealed that the State had already spent billions of shillings in recent months to cushion Kenyans from the global fuel price shock, but admitted that the interventions had not fully tamed the rising costs.
“We have a problem in the Middle East, which has caused scarcity of fuel and the prices of fuel have gone up. Last month we tried very hard and used Sh. 6.2 billion to stabilise the prices of fuel. And we reduced VAT by eight per cent,” said Mbadi.
“This month we again added another Sh. 5 billion to steady the prices of fuel. But they are still high,” he added on Sunday in Kisumu.
The CS said The Treasury would engage President William Ruto on possible options, aimed at lowering the cost of petroleum products.
“What we are going to do is sit down with the President, to make sure that whatever it takes, we try to lower the prices of petroleum products, so that our people can find peace and should not suffer because of rising prices,” he said.
Mbadi defended the government against criticism over the escalating fuel costs, arguing that the crisis was global and not unique to Kenya.
He pointed to the United States, one of the world’s largest oil producers, saying fuel prices there had also surged sharply.
“Even in the United States where they produce fuel, the prices of fuel and petroleum products have gone up by 60 per cent. Everywhere in the world the prices have gone up. But here at home we must do whatever it takes,” he added.
The CS at the same time cautioned politicians against politicising the fuel crisis, saying the matter required sober debate and collective solutions.
“This is not something to be politicised. This is something to discuss and debate soberly as leaders and as people in power, to make sure we look at the options available,” he said.
Among the options under consideration, Mbadi revealed, is reviewing VAT on petroleum products further, as well as sourcing additional resources for fuel stabilisation.
“The other option is to look for more resources and stabilise the prices of petroleum commodities,” he noted.
ODM party Dr Oburu Oginga, also weighed in on the matter, urging Kenyans to remain patient as the government works on long-term solutions.
Homa Bay Governor and ODM national chairperson Gladys Wanga described the rising fuel prices as part of a wider global economic challenge affecting many countries and assured Kenyans that the government was committed to cushioning vulnerable families from the impact of the crisis.
The rising cost of fuel has triggered an increase in transport fares and the prices of essential commodities, deepening the cost-of-living concerns among Kenyans already grappling with high inflation and economic hardship.
It is believed that sustained high fuel prices could further drive-up the cost of production and food prices, with ripple effects across key sectors of the economy.
Leave a comment