The National Assembly of Kenya has approved a Sh10 billion allocation to help stabilise the price of fuel in the country.
MPs pass Sh10 billion fuel stabilisation plan
Good news for Kenyan motorists who have been paying through the nose for fuel
In a sitting on Thursday March 31, the Budget and Appropriation Committee chairman Kanini Kega moved the Supplementary Appropriation Bill which received overwhelming support.
According to the Bill, the National Treasury will pay billions of shillings to oil marketers over two months, starting with April, to keep pump prices unchanged despite an increase in the cost of ferrying the commodity.
Drumming up support for the motion, the MP urged his colleagues to pass the allocation to cushion Kenyans against the rising price of fuel across the globe.
“The crisis that we see in the world has not spared Kenya. Fuel prices in Kenya are a bit lower than in Uganda due to the fuel subsidy. In Uganda, a litre goes for Sh160 while in Kenya at Sh134,” Kega said.
Thanks to the current Petroleum Development Levy that is already in place, for the first time in months, diesel price in Kenya costs less than in any other East African country.
A litre of diesel costs Sh112.63 on average in Kenya, compared to Sh118.44, Sh139.08 and Sh149.91 in Tanzania, Uganda, and Burundi, respectively.
Kenya implemented the subsidy on April 14, 2021, as part of an attempt to quell public outrage over the expensive cost of fuel which trickled down to other necessities.
In many countries, fuel costs have reached a new all-time high, creating a dent in the pockets of consumers.
Also included in the Supplementary Appropriation Bill is the allocation of Sh4.9 billion for the National Government Constituency Development Fund (NGCDF).
As the current term of Parliament draws to a conclusion, the funds will be used to help finish projects that have stalled in constituencies across the country.
To help Kenyans cope with the devastating drought, Sh15 billion has been set aside to buy food and animals from drought-affected communities.
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