Lobby Group Gives Ruto 5 Strategies to Reduce Fuel & Electricity Prices

President William Ruto speaks at a rally in Trans Nzoia
President William Ruto speaks at a rally in Trans Nzoia.
PCS

A former presidential candidate has pressured President William Ruto to slash fuel and electricity prices arguing that the two products have made the cost of living unbearable.

Ambassador Esther Waringa, who served as former President Mwai Kibaki's strategist during his campaign, argued that taxing Kenyans was counterproductive to the overall growth of the country.

She further insisted that the power and fuel sectors, which Ruto infiltrated with the highest levies, should have their prices revised downwards to spur development and attract investors.

To lower the cost of living, Waringa, who serves as the President of Public Service Governance, argued that the state should prioritise revising energy tariffs.

Ambassador Esther Waringa, the President of Public Service Governance.
Ambassador Esther Waringa, the President of Public Service Governance.
Photo
PSG

Specifically, it should reduce the nine levies on petroleum products to four. The government rather than taking Ksh79.32 in tax for every litre of fuel should instead settle for Ksh55, according to Waringa. 

She also challenged the Head of State to revert the 16 per cent Valued Added Tax (VAT) on petroleum products to eight. 

To open up competitive bidding for petroleum to allow cheap and affordable market access away from the government-to-government arrangement, Waringa advised the state to apply the Petroleum Development Levy which will in turn reduce taxation and stabilise oil costs.

"We are here to advise the government that there are multiple alternatives to raise government development funds other than taxing the already burdened Kenyans," she told the press in Nairobi.

"This is because one of the greatest reasons why governments are in power is to give an enabling and conducive environment for its people to live in their country."

President William Ruto, in the latest Finance Act, removed all fuel subsidies instituted by his predecessor and increased the Value Added Tax (VAT) on fuel from 8 per cent to 16 per cent.

Waringa, who has confirmed that she will be on the Presidential ballot in 2027, argued that the taxes were punitive and scaring off investors from setting up shops in Kenya.

"The high cost of doing business is discouraging investors and befitting our neighbouring countries with investments. Consumers in Kenya pay very heavily for power consumption than in our neighbouring countries," she added.

Waringa also advised the government to stabilise the shilling which is now trading at Kh160 against the dollar.

Fuel Pump
A person fueling a vehicle.
Photo
Kenyan wallstreet