President William Ruto on Sunday, May 14, explained how Kenyans will benefit from the increased fuel tax from 8 per cent to 16 per cent.
Addressing the media during a joint interview at State House, Nairobi, the president explained that the double tax was meant to benefit Kenyans in the long run.
Ruto explained that the high levies would eliminate loopholes in the fuel sector as well as free up money for development.
“When I came to the office I found that we had commitments of Ksh900 billion on the roads, I have worked with various departments and brought the number to Ksh680 billion.
“If I have to complete these roads, I need money. Everywhere I go, Kenyans tell me they need roads,” he explained why his administration needed the extra revenue from the fuel kitty.
Ruto revealed that the extra 8 per cent would bring in Ksh50 billion which will go towards investing in road infrastructure development.
Secondly, the President revealed that there were cartels who were using the system to fleece Kenyans.
“Having differential rates one at 8 per cent and another at 16 per cent posed an integrity problem.
“People were using it as a loophole to manipulate the system. My advisors said we must eliminate that loophole,” he explained why the tax was standardized to 16 per cent.
Defending his administration on allegations that the tax increase would hurt Kenyans, Ruto announced that it was well-balanced.
“I have made checks and balances to ensure that the increased tax is cushioned and does not affect Kenyans.
“I have removed three and a half road development levy on fuel and another 2 per cent on IDF fuel levy,” he explained.
President Ruto further faulted former President Uhuru Kenyatta’s administration for engineering a fuel crisis.
“When I came into office, I found that the previous administration had promised Ksh65 billion to oil marketers worth Ksh15 billion.
“I got myself a team of advisors and we discovered that there was no fuel crisis but an economic and dollar problem,” Ruto explained the cause of high fuel prices.
The President explained that he re-introduced Interbank Forex Market which freed pressure on the dollar.
