Sharp Daily
No Result
View All Result
Tuesday, June 24, 2025
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home News

Fears Over Fuel Prices As Ruto Hints At Ending Subsidies

Sarah Wamaitha by Sarah Wamaitha
September 15, 2022
in News
Reading Time: 2 mins read
Fuel prices

Fuel prices [Photo/Courtesy]

President William Ruto has announced plans to end the fuel subsidy program which has seen the government spend over Ksh144 billion in the past year to stabilise fuel prices including Ksh60billion in the last four months alone.

Ruto termed it unsustainable, a move which left many Kenyans in a state of anxiety. He also added that it had increased the National Treasury’s burden and caused an artificial shortage of commodities. In his inaugural speech, Ruto stated that if the fuel subsidy program was to continue, Kenya would need to spend Ksh200 billion in the following fiscal year.

According to Ruto, if the subsidy lasts through the end of the fiscal year, taxpayers will be on the hook for Ksh280 billion, which is the same as the entire national government’s development budget. In an effort to lower the price of fuel by about 13 percent, his predecessor Uhuru Kenyatta started the fuel subsidy program. However, Ruto now claims that it is no longer viable.

Pump prices may soon rise above Ksh200 per litre if the fuel cost stabilization policy is removed.

RELATEDPOSTS

Ruto admits to ‘lonely voice’ in presidency, asks Kindiki to amplify government agenda

November 1, 2024

US stays silent as European allies press Kenya on abductions, rights record

October 31, 2024

Read: Fuel Prices Set To Rise AS KPC Seeks To Hike Tariffs By 36PC

Kenya has spent an average of Ksh9 billion on diesel, super petrol, and kerosene subsidies since April of last year, costs that increased to an average of Ksh12 billion in only the previous four months, highlighting the intervention’s negative effects on the nation’s revenue. The concern is also a result of a statement by Kenya Pipeline Corporation (KPC) warning of a potential price increase as a result of the exchequer’s failure to transfer money owed to oil marketers.

“The interventions in place have not borne any fruit. On fuel subsidy alone, the taxpayers have spent a total of Ksh144 billion, a whooping Ksh 60 billion in the last 4 months. If the subsidy continues to the end of the financial year, it will cost the taxpayer Ksh280 billion, equivalent to the entire national government development budget,” Dr Ruto said.

Read: Why There Is Fuel Shortage In Kenya

Kenyans are now left to wait to see the direction fuel prices will take with the monthly fuel review by the Energy and Petroleum Regulatory Authority (EPRA) expected today for the time period ending October 14. Without the subsidies, drivers would have had to pay historic highs for super gasoline and diesel for the current monthly pricing cycle, respectively, of Ksh214.03 and Ksh206.17 per litre.

While he made it clear that the next administration will cut high food inflation by subsidizing the cost of agricultural inputs, he made no mention of how he would lower the price of fuel, which is largely influenced by global factors. Ruto promised to review a number of taxes that make up about half of the price of gasoline before winning the hotly contested presidential election on August 9 as part of his strategy to reduce the cost of fuel.

The new administration’s strategy for ending subsidies is consistent with pledges made to the International Monetary Fund (IMF) by former President Uhuru Kenyatta’s administration to do so by the end of October.

Email your news TIPS to editor@thesharpdaily.com

Previous Post

Here’s What MPs, Senators And Woman Reps Will Earn In The 13th Parliament

Next Post

SRC’s Revised Salary Structures For MCAs, County Speakers And CECs

Sarah Wamaitha

Sarah Wamaitha

Related Posts

Investments

Investor shift to long term bonds drives oversubscription in CBK’s reopened auction

June 19, 2025
News

The real price of Israel – Iran Conflict for Kenya.

June 19, 2025
Economy

Resilient but strained: Kenyan firms speak out in May 2025 CEO survey.

June 19, 2025
News

Co-op Bank posts KES 6.9 billion profit in Q1’2025

May 16, 2025
Agriculture And Economy
News

Lets get Kenya out of FATF list

May 9, 2025
News

The downside of Impact Investing

May 2, 2025

LATEST STORIES

Parliament slashes tax on digital asset trades: What this means for investors

June 23, 2025

Understanding Joint Ventures: A strategic tool in modern business

June 23, 2025

How bushy can a bush safari get?

June 20, 2025

Understanding SPVs

June 20, 2025

Why small investments are a power move

June 20, 2025

Social consequences of the tax relief for gamblers

June 20, 2025

How E-Tendering can reshape public procurement in Kenya

June 20, 2025

Unlocking long-term wealth with the power of compounding

June 19, 2025
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024