President William Ruto has outlined measures to cushion motorists following a meeting with transport sector stakeholders at State House, Mombasa, on the night of May 21.
Speaking on May 22 at the State House, Mombasa, President Ruto announced that the government will reduce the price of diesel by a further KSh10 in the next fuel pricing cycle.
“I have further directed, after consultation with the transport sector, that in the next pricing cycle, the government will reduce the price of diesel by further Ksh10,” Ruto said.
The new directive comes after the President held a meeting with stakeholders in the transport sector at State House.
Ruto Outlines Government Measures to Cushion Motorists
Ruto further reiterated that in the April–May pricing cycle, the government utilized Ksh6 billion for fuel stabilization and forewent Ksh6.41 billion in VAT revenue, bringing the total intervention to Ksh12.45 billion in efforts to stabilize fuel prices.
He added that in the May–June cycle, the government utilized Ksh7.7 billion and forewent Ksh8 billion in VAT revenue as part of continued measures to cushion motorists from rising fuel costs.
Other measures outlined by the President included the reduction of VAT on petroleum products from 16 per cent to 8 per cent, a move that has resulted in the government foregoing approximately Sh14.4 billion in tax revenue.
Ruto stated that every nation facing the current crisis is being compelled to make sacrifices, noting that Kenya is also making its share of sacrifices.
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What Transport Stakeholders Agreed On
During the meeting, the government and stakeholders agreed on a number of measures aimed at easing the financial burden on transport operators servicing vehicle loans.
Among the resolutions reached was a commitment by the Ministry of Transport to engage the financial sector on possible temporary relief measures for players in the transport industry.
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The government also pledged to work with insurance regulators to ensure faster settlement of claims and payment of bills arising from road accidents for motorists with valid insurance cover.
In addition, stakeholders agreed on the need for an immediate review of the Auctioneers Act and insurance-related regulations to promote fairness within the sector.
The meeting further resolved that Transport Network Companies will engage on measures to regulate taxi fares in a move aimed at addressing concerns affecting the ride-hailing sector.
