The National Assembly has formally agreed to consider proposals by Ndindi Nyoro aimed at lowering fuel prices, as pressure mounts on the government following the nationwide matatu strike triggered by soaring pump costs.
In a communication from Parliament’s Parliamentary Budget Office, the House confirmed receipt of Nyoro’s letter dated May 15, which outlines a series of legislative amendments intended to reduce the cost of fuel and ease the burden of the rising cost of living on Kenyans.“The proposals shall be processed in accordance with the provisions of Article 114 of the Constitution and the National Assembly Standing Orders,” the letter signed by Parliamentary Budget Office Director Martin Masinde stated.
Parliament said the proposals have already been forwarded to the relevant House committees for consideration.The Budget and Appropriations Committee alongside the Departmental Committee on Finance and National Planning are expected to engage the Kiharu MP on the financial implications of the proposed changes, including their impact on the current and upcoming national budgets as well as obligations linked to the Road Maintenance Levy Fund.
In his submission, Nyoro proposed several measures targeting retail fuel prices for super petrol, diesel and kerosene.Among the key proposals is the reduction of the Road Maintenance Levy Fund charge by Sh7 per litre through the revocation of the 2024 levy order that raised the charge from Sh18 to Sh25 per litre.
He also proposed amendments to the VAT Act to make petroleum products VAT-exempt, effectively reducing VAT on fuel from the current eight per cent to zero.“These amendments are short-term measures aimed at reducing the inflationary and sticky economic effects arising from the current high fuel prices,” Nyoro stated in his submission.
The MP further proposed reducing the profit margins of importers and distributors, currently capped at Sh17.39 per litre for super petrol and Sh17.31 for diesel, as well as introducing an additional Sh5 billion subsidy exclusively for petrol fuel.Nyoro said the combined measures could lower the price of diesel by approximately Sh54 per litre, with super petrol also expected to reduce significantly.
In a statement posted on his Facebook page, the legislator welcomed Parliament’s response, saying the process to lower fuel prices had officially begun.“Following the proposals to Parliament with the intention to lower various taxes and levies to reduce fuel prices, I’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 stated.
The proposals come amid growing public outrage over increased fuel prices following the May 14 review by the Energy and Petroleum Regulatory Authority.The review saw the price of Super Petrol rise by Sh16.65 per litre and Diesel by Sh46.29, pushing pump prices in Nairobi to Sh214.25 and Sh242.92 respectively.
The increase sparked a nationwide strike organised by the Transport Sector Alliance, paralysing movement in major towns and cities as matatus, online taxi operators, cargo transporters and motorcycle riders withdrew services.
On Monday and Tuesday, thousands of commuters were forced to walk long distances to work while others paid higher fares on the few routes that remained operational.The transport disruption also affected schools, businesses and supply chains, intensifying pressure on the government to intervene and address the rising fuel costs.