Kiharu Member of Parliament, Ndindi Nyoro, has raised the alarm over what he described as the government’s opaque and unconstitutional borrowing practices, linking them to the recent surge in fuel prices.
The MP disclosed that the government secretly introduced a Ksh7 fuel levy last year despite a global drop in fuel prices and used the levy as collateral to secure a Ksh175 billion loan.
"We saw fuel prices go up drastically yesterday, and the explanation given by the government is not accurate. Blaming global oil prices falls short of the reality. Over the past year, the highest fuel prices we have seen were actually on June 17th, 2024. This year, the highest prices so far were in January. But having said that, it’s important to understand that of what Kenyans pay at the pump, about half is made up of taxes and levies. For petrol prices, over Ksh80 shillings of what people pay goes into taxes and levies," Nyoro stated.
Nyoro made the remarks during an address on Tuesday, July 15, as he criticised the recent sharp hike in fuel prices and questioned the accuracy of the government’s explanation.
"The government of Kenya actually added a new levy of seven shillings to fuel prices last year. The way the government works is that it waits until fuel prices come down; that’s actually why Kenyans never fully benefit from the global drop in oil prices. It was around that time that the government secretly introduced a seven-shilling fuel levy. That is partly why fuel prices keep going up. But what’s even more unfortunate is that this year, the government has used that seven-shilling levy as security to get a loan of 175 billion shillings from the banks. This money does not appear in the government’s books as debt," he alleged.
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The Energy and Petroleum Regulatory Authority (EPRA) announced new fuel prices, raising the cost of super petrol, diesel, and kerosene by Ksh8.99, Ksh8.67, and Ksh9.65, respectively.
In a statement on Monday, July 14, the authority said the revised prices will take effect from midnight, July 15, and remain in force until August 14.
"In accordance with Section 101(y) of the Petroleum Act 2019 and Legal Notice No.192 of 2022, we have calculated the maximum wholesale and retail prices of petroleum products which will be in force from 15th July 2025 to 14th August 2025,” the statement read.
