Despite the subsidy program’s gradual termination, Patrick Njoroge, governor of the Central Bank of Kenya (CBK), forecasted a decrease in fuel costs in Kenya in December.
During an induction meeting conducted at the Safari Park Hotel in Nairobi, the CBK boss claimed prices for the commodity had started to decline on the global market.
“As you can see, it had gone as far as $130 (KSh 15,665) a barrel in March, and now it has come down to $93 (KSh 11,200) a barrel. The expectation is that this will come even more to the point where we wouldn’t have to have the subsidies,” the governor explained.
Operations in nations that produce oil are returning to normal, according to Njoroge, and this will be evident in three months.
The CBK chairman backed President William Ruto’s decision to eliminate subsidies, arguing that their continued existence might have harmed the economy.
“It is true we eliminated the fuel subsidies on the super, diesel…We have the price coming down, and thus, the gap is widening, so the pressure on the consumer and the government becomes less and less. That is the expectation but let’s wait and see,” he said.
