The Kenyan government has re-established a small petrol subsidy to stabilise the retail fuel prices in the country for the next 30 days, according to its energy regulator, EPRA, late Monday night.
This latest move is in reversal of the government’s plans following the general public’s anger over the inflated cost of living.
On being sworn into office September 2022, President William Ruto proceeded to remove fuel and maize flour subsidies established by his predecessor, remarking that subsidising production was preferable to subsidising consumption.
The action was geared towards cutting down the federal government’s spending as it seeks to control the debt repayments that have compelled it to reject market speculations on a probable default.
Due to the subsidy cuts and recent tax hikes, costs of living have increased and have further contributed to the vicious anti-government demonstrations in the country in recent months.
The energy regulator had announced that the maximum retail price for a litre of petrol would remain constant, at the price of 194.68 shillings ($1.35), protecting consumers from an increase of 7.33 shillings, which the government will bear through a price stabilisation fund.
The Kenyan government had also applied small-scale subsidies on kerosene and diesel.
This change did not amount to a re-establishment of the subsidies, as the regulator was using the petroleum development levy to stabilise costs, according to Daniel Kiptoo, the director general of EPRA.
Officials from both the energy ministry and finance ministry had not immediately responded to appeals for comment as at the time of filing this report.
