Treasury Cabinet Secretary (CS) John Mbadi has defended the government regarding the rising fuel prices and dismissed claims by Kiharu Member of Parliament Ndindi Nyoro.
Energy and Petroleum Regulatory Authority (EPRA) increased petrol prices by Ksh9, diesel by Ksh8, and kerosene by Ksh9.
EPRA attributed the price increase to higher landed costs of fuel.
However, Nyoro argued that EPRA’s explanation was incorrect, claiming domestic fuel prices no longer follow global trends.
He asserted that the government quietly added a Ksh7 per litre levy in 2023, despite declining global prices, preventing relief at the pump.
“The government added a new levy last year in the fuel prices, and how the government works—you time it when the fuel prices are coming down. That’s why Kenyans never felt the global deceleration of prices, because it’s around that time that the government introduced a secret Ksh7 in the fuel levy,” Nyoro said.
Mbadi told the National Assembly Delegated Legislation Committee that Nyoro’s claims were misinformed.
He clarified that the price hike was caused by ongoing conflicts between Israel and Iran and rising global oil prices.
“When you start misreporting and giving statements that are not factual—and you’ve been chair of the Budget and Appropriations Committee—then you leave Kenyans asking whether you have what it takes to offer leadership at any level.”
“You cannot say that petroleum prices have gone up because the government has diverted stabilisation funds to pay or take secret loans. What is secret about securitisation?”
Why Govt Securitized Part of Fuel Levy
Mbadi defended the government’s decision to securitise part of the fuel levy.
He insisted all procedures were followed legally and that the government would continue with the securitisation.
“There is nothing, nothing at all secret about securitisation. Everybody knows it. Where does he live if he doesn’t know we were securitising this money? We will continue doing it, and we have no apologies to make,” Mbadi stated.
Also Read: EPRA Hikes Fuel Prices for July 15 – August 14
Mbadi on the Ksh18 Fuel Levy
He added that the original Ksh18 levy remains allocated solely for road maintenance.
He explained the Ksh7 increase was deliberately redirected to unlock stalled infrastructure projects by clearing payments owed to road contractors.
“We had a choice, either continue pouring that money into murram roads that are swept away every rainy season or use it to revive major road projects. Contractors had downed their tools because we owed them about Ksh130 billion,” he explained.
Chirchir Defends Govt’s Decision
Roads CS Davis Chirchir also issued a statement stating that the securitisation plan aims to raise funds for settling verified pending bills in the roads sector, totalling Ksh175 billion.
Chirchir said these bills stemmed from commitments made by the previous administration but remained unpaid, leading to the suspension of over 580 road projects nationwide.
He explained that this involves the sale of rights to a portion of the levy, executed transparently and under full legal oversight from the National Treasury and the Attorney General.
Also Read: Why EPRA Increased Fuel Prices
Furthermore, he affirmed that the securitisation plan does not constitute new debt.
“This financing approach ensures that contractors are paid promptly, stalled road projects are revived, and communities benefit from improved infrastructure, all without increasing Kenya’s public debt. It also guarantees that the Road Maintenance Levy will continue to fund road upkeep and development as planned, with a clearly defined portion allocated to addressing historical liabilities,” Chirchir said.
Treasury Targeting More
However, it is now emerging that the Treasury is considering an additional Ksh5 from the remaining Ksh8 in the levy.
“We feel that you’re using these Ksh18 on murram roads that are not helping the economy, and a lot of it is eaten. Agreements between contractors, politicians, and regional road managers—we know it,” Mbadi said.
Follow our WhatsApp Channel and X Account for real-time news updates.
