The national government’s response to the sharp rise in fuel prices has been farcical, provocative and deeply troubling — though perhaps not entirely unexpected from a regime increasingly viewed as predatory, tone-deaf and economically inept.
It is farcical because the President and his Cabinet Secretaries continue to lament publicly and portray themselves as helpless victims of global events, while conveniently ignoring their own role in crafting the flawed policies that have fuelled the current crisis.
It is provocative because state officials have repeatedly dismissed credible warnings and recommendations from independent economists and fiscal planners who foresaw the crisis and proposed measures that could either have prevented it or softened its impact. Instead of taking urgent and practical action to calm public anxiety, the Cabinet Secretaries in charge of Energy and the National Treasury have resorted to defensive rhetoric, hollow reassurances and Orwellian talking points aimed more at protecting the government’s image than solving the crisis.
The government’s messaging has become increasingly contradictory. Senior officials continue to recycle the same flawed energy policy arguments championed by President William Ruto since taking office, culminating in controversial decisions such as the government’s divestiture from the Kenya Pipeline Company and the opaque government-to-government fuel import arrangement with Gulf states.
Kenyans will remember that not too long ago, President Ruto dismissed the Uhuru Kenyatta administration’s explanation that global disruptions caused by the Russia-Ukraine war had pushed up fuel prices. Then Deputy President Ruto questioned why Uganda, which imports fuel through the Port of Mombasa, was selling petroleum at lower prices despite the same global conditions.
Today, however, the same administration insists that the conflict in the Middle East and tensions around the Strait of Hormuz are solely to blame for rising fuel prices in Kenya.
The obvious question is the same one Ruto himself posed in 2022: if global conflict is the only cause, why is fuel still cheaper in Uganda, Ethiopia and several of Kenya’s neighbours? Why has Kenya failed to diversify its sources of petroleum imports? Why does a country that prides itself as a regional economic hub appear more vulnerable than its neighbours?
The truth is that the current fuel crisis is not simply the result of global instability. It is also the product of poor policy choices, conflicting interests and a government unwilling to confront entrenched profiteering networks within the energy sector.
Several interventions that could stabilise fuel prices or cushion consumers have either been ignored or deliberately avoided. The Kenya Kwanza administration appears more interested in protecting politically connected beneficiaries of the current fuel import regime than implementing reforms that would benefit ordinary citizens.
Central to the controversy is the much-publicised government-to-government fuel import deal between Kenya and Gulf states. While the arrangement was initially marketed as a solution that would stabilise prices and ease pressure on foreign exchange reserves, critics now argue it has evolved into a monopolistic structure benefitting a politically connected clique while exposing consumers to greater vulnerability.
At the same time, the administration dismantled or weakened several policy tools that had previously helped Kenya absorb global fuel shocks. Among them was the Fuel Stabilisation Fund, which had been used to cushion consumers from sudden price spikes.
The government also increased VAT on fuel to 16 per cent before reducing it to 8 per cent under public pressure — a move many viewed as too little, too late. The reduction offered limited relief to households and businesses already struggling with high production and transport costs.
You cannot simultaneously abolish subsidies in a developing economy, increase fuel taxes, reject proposals for strategic fuel reserves, and still claim to be pursuing sound economic management.
Kenyans are also paying more through increased Road Maintenance Levy charges introduced under the current administration, yet many roads across the country continue to deteriorate. Citizens are being asked to bear heavier tax burdens without seeing corresponding improvements in infrastructure or public services.
No modern economy can industrialise or remain competitive without secure, affordable and sustainable energy. Kenya must urgently rethink its energy policy framework.
The country needs strategic fuel reserves capable of cushioning the economy against global disruptions. It must diversify its sources of petroleum imports, expand and modernise pipeline infrastructure, and adopt a fairer taxation regime that lowers the cost of production.
In the short term, the government should seriously consider targeted subsidies or temporary suspension of certain fuel-related levies to ease pressure on consumers and businesses.
Anything less amounts to economic experimentation at the expense of struggling Kenyans.
Godfrey Osotsi is the Senator for Vihiga County
