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Good news as MPs pass Sh10 billion levy to stabilise fuel prices

Kenya’s National Assembly has authorized a Sh10 billion provision to assist stabilize the country’s fuel prices.

Kanini Kega, the chairman of the Budget and Appropriation Committee, moved the Supplementary Appropriation Bill on Thursday, March 31, and it garnered overwhelming approval.

The National Treasury would pay billions of shillings to oil marketers over two months, beginning in April, to maintain pump rates despite an increase in the cost of transporting the commodity, according to the Bill.

The MP summed up support for the motion by urging his colleagues to pass the allocation to protect Kenyans from the global rise in fuel prices.

Good news as MPs pass Sh10 billion levy to stabilise fuel prices

“The crisis that we see in the world has not spared Kenya. Fuel prices in Kenya are a bit lower than in Uganda due to the fuel subsidy. In Uganda, a litre goes for Sh160 while in Kenya at Sh134,” Kega said.

For the first time in months, Kenya’s fuel price is lower than that of any other East African country, thanks to the existing Petroleum Development Levy.

In Kenya, a litre of diesel costs on average Sh112,63, compared to Sh118.44, Sh139.08, and Sh149.91 in Tanzania, Uganda, and Burundi.

Kenya established the subsidy on April 14, 2021, in an effort to calm public uproar over the high cost of fuel, which had spilled over into other requirements.

Fuel prices have risen to new all-time highs in numerous countries, putting a strain on consumers’ wallets.

The Supplementary Appropriation Bill also includes a Sh4.9 billion grant for the National Government Constituency Development Fund (NGCDF).

The monies will be used to help finish projects that have stagnated in constituencies across the country as Parliament’s current session draws to a close.



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