Ruto defends fuel price hike, says VAT to be reduced from 16% to 8%

President William Ruto has defended the hike in fuel prices in the country, saying the government was forced to pay out Ksh.6.5 billion to cushion Kenyans against exorbitant fuel prices, as witnessed in several countries across the globe.

The President, while speaking in South Mugirango Constituency in Kisii County as he wound up his four-day tour of the Gusii region, maintained that many countries have run out of petroleum products owing to what is currently happening in the Middle East.

“We have had issues of war in the Middle East and the price of fuel is high everywhere, but in Kenya, tumepanga vizuri kuhakikisha kuwa ile bei ambayo ingeruka juu sana, tumeifanyia moderation,” he said.

“Tumetoa pesa ya serikali Ksh.6.5 billion kuleta subsidy; we have brought down VAT to ensure we moderate the fuel.”

"We are going to bring down VAT from 16% to 8% for the next three months until we make sure we make it through this phase," he stated.

The head of state, at the same time, lauded his administration's government-to-government (G2G) arrangement, which he says has made Kenya a competitive fuel destination.

“You cannot compare our fuel with our region or other countries. There are countries which do not have fuel, but we have enough fuel,” he said.

“We have also reduced VAT to make sure that Kenyans do not bear the brunt of high fuel prices," he noted, promising to improve the country’s economy despite external shocks.

The Head of State, who was flanked by several leaders from the region, continued with his attacks against opposition leaders who have been criticising his leadership amid the fuel crisis, saying they lack an agenda for Kenyans and only thrive on divisive politics.

The Energy and Petroleum Regulatory Authority (EPRA) announced on Tuesday that the cost of Super Petrol and Diesel has increased by Ksh. 28.69 and Ksh. 40.30 per litre, respectively, while the price of kerosene remains unchanged.

This pushed the maximum retail price for Super Petrol to Ksh.206.87 per litre, with Diesel retailing at Ksh.206.84 and Kerosene at Ksh.152.78 per litre.

Following the government announcement, the opposition threatened to call for mass action if President Ruto’s administration does not address the fuel crisis.

Among those who convened a press conference on Wednesday were Rigathi Gachagua, Kalonzo Musyoka, Fred Matiang'i, Eugene Wamalwa and Justin Muturi, who faulted the Head of State over the rising fuel costs.

According to the opposition, the hike in fuel prices is a result of irregularities in petroleum importation procedures under the government-to-government framework.

Matatu operators have since announced a 25 per cent increase in fares across the country following the latest price review by EPRA.

Matatu Owners Association President Albert Karakacha has since said the fare adjustment takes effect immediately and will apply to both short and long-distance travel.