National Assembly Budget and Appropriations Committee Chairperson Samuel Atandi has criticized Kiharu MP Ndindi Nyoro for raising concerns over what he termed as unconstitutional borrowing practices by the government, which he linked to the recent surge in fuel prices.
In a statement on Wednesday, July 16, Atandi defended the government's decision to securitize part of the Road Maintenance Levy Fund.
The ODM lawmaker accused Nyoro of being fixated on the issue after he was removed from the Budget and Appropriations committee leadership.
“There is nothing illegal about the securitization of a proportion of the fuel levy. Obsession by Hon Ndindi Nyoro on this subject has everything to do with his own power 'hangover' and entitlement over sharing of public resources, in which his absence at the real table is a misnomer,” Atandi said.
On Tuesday, Nyoro 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.
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The Kiharu MP dismissed the Ministry of Energy’s explanation, which attributed the fuel price increase to rising global oil prices, arguing that it is a result of excessive taxation and the securitization of fuel levies.
"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.
The Energy and Petroleum Regulatory Authority (EPRA) on July 14 increased the price of super petrol, diesel, and kerosene by Ksh8.99, Ksh8.67, and Ksh9.65, respectively.
