President William Ruto's economic advisor, David Ndii, on Saturday, August 19, defended the Kenya Kwanza administration even as Kenyans continue to chide the government for reinstating the fuel subsidy, months after the Head of State eliminated it, claiming it is unsustainable
In a statement issued on Saturday, August 19, Ndii emphasised that the fuel standardisation initiative was already outlined in the Kenya Kwanza manifesto.
He maintained that this program should not be regarded as a subsidy. In support of his statement, Ndii shared a copy of the manifesto, which proposed the establishment of a legal framework to safeguard the fuel stabilisation fund.
The experienced economist took issue with the recent public criticism aimed at the current administration saying condemnation is misdirected.
Ruto has in recent days been accused of doublespeak especially considering his criticism of former President Uhuru Kenyatta for introducing the programme in 2021.
"This should settle this frivolous noise about subsidy or stabilisation but of course, it won't because some dynasty courtiers would rather the country collapses than Ruto succeeds," he stated.
However, minutes after issuing the statement, some Kenyans identified loopholes in Ndii's statement with some wondering whether the Ruto administration fully followed through with the initial plan of developing a framework before stabilising the fuel prices.
According to the Energy and Petroleum Regulatory Authority (EPRA), price standardisation has been implemented through the Petroleum Development Levy, outlined in the Petroleum Development Levy Order of 2020.
This mechanism ensures price stability without drawing from the exchequer, unlike subsidies.
“The fund shall also be used for matters relating to the development of the oil industry including stabilising local petroleum pump prices in instances of spikes occasioned by high landed costs above a threshold determined by EPRA," read the statement in part.
In the recent pricing update for August, EPRA maintained the prices at the same level as July. Specifically, Super Petrol, Diesel, and Kerosene will be sold at Ksh194.68, Ksh179.67, and Ksh169.48, respectively.
