NAIROBI, Kenya July 14 – Fuel prices will remain unchanged for the month of July after the government authorized an additional Sh16.675billion fuel subsidy to cushion Kenyans from a further increase in the cost of the commodity.
In Nairobi, petrol will retail at Sh159.12, diesel at Sh140.00, and kerosene at Sh127.94.
According to a statement from the office of the President, without the fuel subsidy the pump prices would have been Sh209.95 for petrol, Sh193.64 for diesel, and Sh181.13 for kerosene.
“The President understands that high fuel prices pose a significant challenge for every Kenyan household. In response to these challenges, the government has over the last year implemented a fuel stabilization programme that has offered reprieve to Kenyans at the pump through a subsidy of Sh101.852 Billion, to date,” said Kanze Dena, StateHouse spokesperson in the statement.
The intervention comes as a relief even as the National Treasury mulls eliminating the fuel subsidy saying it is inefficient.
Further, Treasury noted that the cost of the fuel subsidy could eventually surpass its allocation in the National Budget, thus potentially escalating public debt to unsustainable levels and disrupting the Government’s plans to reduce the rate of debt accumulation.
“For this reason, a gradual adjustment in domestic fuel prices will be necessary in order to progressively eliminate the need for the fuel subsidy, possibly within the next Financial Year,” said Treasury CS Ukur Yatani.
In scrapping the subsidy, Treasury intends to create fiscal space necessary for the Government to support targeted public spending on productive sectors such as fertiliser subsidies, universal health coverage and subsidized primary and secondary education, among others.
