The National Assembly has responded to proposals by Kiharu MP Ndindi Nyoro seeking to lower fuel prices through reductions in taxes and levies.
In a statement on Wednesday, May 20, Nyoro welcomed Parliament’s response, saying the proposals had formally entered the legislative process.
"Following the proposals to Parliament with the intention to lower various taxes and levies to reduce fuel prices, l'm glad Parliament has responded and the process has taken off. We'll be appearing before the relevant committees hopefully next week as part of the process," he said.
Nyoro noted that the proposals were aimed at easing the cost of living for all Kenyans, beyond just the transport sector which has been heavily affected by rising fuel costs.
"The proposals are independent of whatever discussions other sectors of the economy will be having. Whereas rising prices directly affect the transport sector, they also affect all Kenyans directly and indirectly," he added.
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In a letter addressed to Nyoro, the Clerk of the National Assembly confirmed receipt of the proposals and indicated that they had been forwarded to relevant House committees for consideration.
"We advise that the proposals shall be processed in accordance with the provisions of Article 114 of the Constitution and the National Assembly Standing Orders," the letter read.
The Clerk stated that the matter had already been referred to parliamentary committees which will guide the legislator on the next phase of the process.
"They have been transmitted to the relevant Committees of the House which shall contact and guide you on the next steps," the letter added.
The National Assembly also indicated that Nyoro would be required to appear before committees to explain the potential financial implications of the proposed tax and levy reductions.
"As per the established practice, the Budget and Appropriations Committee and the Departmental Committee on Finance and National Planning shall require you to make representations on the implications of your proposals on the approved Budget for FY 2025/2026; the Budget Estimates for FY 2026/2027 and the existing contractual and other collateral obligations relating to the proceeds of the Road Maintenance Levy Fund, at the appropriate time," the letter further read.
On Friday, May 15, Nyoro proposed a raft of measures aimed at lowering fuel prices.
In a statement, he warned that the current cost of petroleum products could severely hurt the economy and increase the cost of living.
Nyoro criticized the current fuel pricing structure, saying the country risks facing a major inflation crisis if urgent interventions are not taken.
"The drastic rise in fuel prices to Ksh214.25 for Petrol and 242.92 for Diesel is unacceptable and will grossly hurt the economy now, in the medium and long term. Inflation is expected to rise drastically in the month of May going forward if we do not change course," he said.
Nyoro also argued that previous government interventions on Value Added Tax had failed to provide meaningful relief to consumers because VAT calculations are tied to the rising landed cost of fuel imports.
"The reduction in the percentage of VAT has not done much to reduce pump prices. This is due to the fact that VAT is calculated as a percentage of the landed cost, which has escalated," he added.
Nyoro further accused the government of manipulating fuel pricing announcements for political purposes, saying the public was still left with high pump prices despite claims of reductions.
"It is not acceptable that the government has been playing with fuel prices for political gains, purporting to give further direction after price guidance by EPRA. Policymakers need to understand that the announcement of "reduction" of variables after the gazetting of prices still leaves resultant costs high," he continued.
Nyoro also warned that increases in fuel prices often trigger permanent increases in transport and commodity costs, even when fuel prices later decline.
"Most price hikes are sticky and therefore may not correspond with any reduction. Case in point is the transport cost. When fares go up, they become sticky, and therefore Kenyans are left paying high prices. What happened last Month is unfortunate," he further said.
According to Nyoro, the proposed interventions would include reducing importers’ and distributors’ margins by Ksh4 per litre, providing an additional Ksh5 billion diesel subsidy, scrapping VAT on petroleum products and reducing the fuel levy introduced in 2024 by Ksh7.
He noted that while the current government pricing structure places Super Petrol at Ksh214.25 and Diesel at Ksh242.92 per litre, the proposed changes would lower the prices to Ksh187.38 for Petrol and Ksh189.16 for Diesel.
Under the proposals, Diesel subsidy support would increase significantly from Ksh14.51 per litre to Ksh24.75 per litre following the additional Ksh5 billion allocation.
The plan would also eliminate VAT charges currently amounting to Ksh15.87 on Petrol and Ksh17.99 on Diesel, while also removing Ksh7 from the fuel levy.
