Kiharu MP Ndindi Nyoro has proposed a series of measures he says could reduce fuel prices in Kenya by at least KSh27 per liter, offering potential relief to consumers grappling with the rising cost of living.
Speaking during a press conference on Wednesday, Nyoro criticized the government’s handling of fuel pricing, describing recent increases approved by the Energy and Petroleum Regulatory Authority as unjustified. He argued that current pump prices remain disproportionately high compared to global oil market trends.
Nyoro noted that international crude oil prices have declined significantly from peaks seen in mid 2022, when prices exceeded USD115 per barrel. Despite this drop, he said, Kenyan consumers continue to pay near record prices for petrol and diesel.
He questioned the logic behind the current pricing structure, pointing out that lower global prices should translate into reduced costs locally. According to him, the existing system raises concerns about taxation, levies and inefficiencies within the fuel supply chain.
Proposal targets subsidy expansion
Central to Nyoro proposal is an increase in government intervention through the Fuel Stabilisation Fund. He dismissed the current KSh6.5 billion allocation as insufficient to cushion consumers from price shocks.
Instead, the MP called for a minimum of KSh10 billion to be injected into the fund in the short term. He said such a move could directly lower pump prices within one month if implemented effectively.
Nyoro noted that the fund currently holds about KSh20 billion and argued that authorities should deploy a larger portion of it to stabilize prices more aggressively. He maintained that the resources are available but require decisive action from policymakers.
He also raised concerns about the broader fuel pricing framework, urging a review of taxes and regulatory charges embedded in pump prices. Nyoro said overlapping levies and inefficiencies could be inflating costs unnecessarily for consumers.
Fuel prices in Kenya are adjusted monthly by the Energy and Petroleum Regulatory Authority, taking into account global oil prices, exchange rates and a range of taxes and margins. However, critics have long argued that the system lacks transparency and does not adequately protect consumers during periods of global price decline.
Nyoro remarks add to growing public pressure on the government to address the cost of living, which has been driven in part by high energy prices. Many households and businesses continue to feel the impact of rising fuel costs across transport, food and basic commodities.
Lower fuel prices could have far reaching effects across the economy, potentially reducing transport costs and easing inflationary pressure. Businesses, particularly in logistics and agriculture, could benefit from reduced operational expenses.
However, economists caution that increasing subsidies without a clear long term plan could strain public finances. Balancing consumer relief with fiscal sustainability remains a key challenge for policymakers.
Nyoro said targeted short term intervention is necessary to provide immediate relief while broader reforms are developed to ensure long term stability in fuel pricing.
His proposal is likely to intensify debate over Kenya fuel pricing policies and the role of government intervention in managing economic pressures.
