MP Nyoro says explanation on fuel price increase misleading, incomplete » Capital News

NAIROBI, Kenya, Jul 15 – Kiharu Member of Parliament Ndindi Nyoro has strongly criticized the recent sharp increase in fuel prices, terming the government’s explanation as misleading and incomplete.

Speaking on the matter, Nyoro questioned the justification given by the Ministry of Energy, which attributed the hike to global oil prices — despite data showing that the highest global oil prices were recorded last year, not this year.

Nyoro explained that the real problem lies in excessive taxation and the securitization of fuel levies.

He noted that out of what Kenyans pay at the pump, over 80 shillings per litre of petrol and 76 shillings for other fuels go directly into taxes and levies.

“In an oil-producing country like Kenya, the only effective tool a government has to stabilize fuel prices is by adjusting the taxes. Unfortunately, that’s where the government is failing,” he said.

The MP further revealed that last year, the government quietly introduced a 7-shilling fuel levy, at a time when global fuel prices were dropping. This move, he argues, prevented Kenyans from benefiting from global price reductions.

More worrying, he said, is the government’s alleged move to securitize this levy and borrow Sh175 billion using it as collateral.

“This money is not reflected in the official debt books and never came to Parliament for approval. That raises serious accountability and legal questions,” Nyoro said.

He questioned how much the government has borrowed, from whom, at what interest, and what implications this has for future budgets.

He warned that the government is now spending money collected in advance for the next several years, locking out future administrations from making budgetary decisions.

“If we continue using public levies as collateral for loans without parliamentary oversight, what will stop future lenders from securitizing our VAT, PAYE, or NHIF? What will be left of Kenya’s financial sovereignty?” he asked.

Nyoro is calling for urgent transparency from the National Treasury, a public audit of all off-book borrowing, and a national conversation on sustainable fiscal management