Kiharu Member of Parliament Ndindi Nyoro has issued a timely notice of proposed amendments aimed at significantly reducing fuel prices in Kenya.
In a detailed statement released amid public outcry over rising pump prices, Nyoro outlined practical, immediate measures that could slash costs by at least Sh27 per litre without introducing new fiscal burdens on the government.
Kenya’s fuel prices have remained a heavy burden on households and businesses.
“The drastic rise in the fuel price is unacceptable and will grossly hurt the economy in the medium and long term.” Nyoro affirmed that inflation could be experienced henceforth if the course id not changed.
Recent EPRA adjustments have seen super petrol climb to over Sh214 per liter in some reviews, with diesel sky rocketing to Sh 242.92 and kerosene also under pressure from global oil fluctuations and a volatile shilling.
Transport costs have surged, pushing up the price of food, goods, and services. Nyoro argues that these high prices are not inevitable but result from policy choices that can be reversed quickly to cushion citizens.
At the heart of Nyoro’s proposal is a multi-pronged approach focusing on taxes, levies, and strategic subsidies.
First, he calls for the immediate removal of the Sh7 per liter fuel levy introduced in 2024. This adjustment can be effected swiftly through a gazette notice, providing direct relief at the pump.
Second, the legislator proposes an additional 5% reduction in Value Added Tax (VAT) on fuel products. According to his calculations, this single move would translate to approximately Sh8 savings per litre.
Nyoro notes that while an earlier VAT adjustment to 8% was made, further targeted relief is necessary given current economic realities.
He has emphasized making fuel VAT-exempt or reverting to pre-2023 rates during this period of strain.
Third, Nyoro urges the government to inject at least an additional Sh5 billion into the Fuel Stabilization Fund.
This enhanced subsidy, he estimates, could deliver around Sh12 reduction per litre. Combined with the levy removal and VAT cut, these steps would yield the targeted Sh27 per liter drop.
He stresses that such interventions are feasible and would not hurt key stakeholders.
Beyond these core measures, the MP has suggested reviewing importer, wholesaler, and retailer margins, which currently stand at around Sh22 per litre.
A modest reduction here.such as Sh4 could further support lower pump prices while maintaining viability for the industry. Nyoro has framed these proposals as “objective” and “practical,” suitable for implementation ahead of the mid-month EPRA review.
The Kiharu MP’s intervention comes as matatu operators and businesses warn of potential fare hikes and strikes due to elevated costs.
High fuel prices ripple across the economy, inflating transport, manufacturing, and agricultural expenses.
Nyoro warns that failure to act risks broader inflationary pressures and hardship for ordinary Kenyans already grappling with a tough cost-of-living environment.
Supporters view the proposals as a pragmatic response that prioritizes citizens over rigid fiscal positions.
Nyoro maintains the measures can be executed without long-term damage, especially with prudent management of the Stabilization Fund. His call aligns with ongoing public demands for bottom-up economic relief.
As fuel prices are reviewed periodically, Nyoro’s notice of proposed amendments offers a clear roadmap for policymakers.
Implementing these changes could deliver immediate relief, stabilize transport costs, and support broader economic recovery.
