CS Mbadi, Chirchir and Wandayi to meet matatu operators as fuel price crisis bites

Speaking to Citizen TV on Monday following the nationwide transport strike, Mbadi said a meeting bringing together the National Treasury, the ministries of Transport and Energy and other officials was being convened, with a plan to engage matatu operators.

“We have a meeting between the National Treasury, the Ministry of Transport… the Ministry of Energy… hopefully, together with the matatu operators, just to discuss with them… and explore any possibility of further action that can be taken,” Mbadi said.

He said the government was not insensitive, but was dealing with a worldwide crisis driven by the war involving the US and Iran, noting reports of attacks on infrastructure in the Middle East.

“It is not that this government is insensitive. It is that we have a crisis, which is a worldwide crisis,” he said.

Mbadi said the room for further concessions was limited and largely centred on taxes such as VAT, warning that reducing VAT to zero would come with consequences on revenue and budget implementation.

“If, for example, we lower VAT to zero, what are the consequences? You are going to lose more revenue… are we going to be able to implement our budget?” he posed.

He said the government had previously made “cheap and populist decisions” that later carried serious consequences, citing fiscal pressures faced in 2024.

“We have made populist decisions before, and we have faced the consequences… in 2024, we almost defaulted in paying our debts,” Mbadi said.

While empathising with Kenyans affected by the shutdown, Mbadi said he did not believe the strike was necessary and criticised road blockades and burning of tyres, suggesting the crisis was being politicised.

“Why should you burn tyres on the roads? Why should you put stones on the road? It means that someone is now politicising a crisis that is already bad and making it worse,” he said.

On alternative fuel sourcing, Mbadi said Kenya was not facing a fuel shortage, insisting supplies are available but are landing at higher prices due to the global situation.

“We are not lacking fuel… Fuel is in this country… It’s only that they are arriving here or landing here at higher prices than they used to land here a few weeks or months ago,” he said.

Mbadi warned that if the war drags on, the impact could be severe for the world economy, saying global institutions have already revised inflation and growth projections due to rising fuel prices.

“This is a world crisis… It is a problem that only America and Iran have to solve. They must stop the war,” he said