Fuel subsidies guzzle up Sh67 billion, says Energy CS Juma

The government through Energy Cabinet Secretary Monica Juma has revealed that they have disbursed more than Sh67 billion in fuel subsidies to cushion Kenyans from the high cost of living.

CS Juma who made the revelation on Thursday, June 17, said that the government projects by the end of this financial year, they will have spent close to Sh84billion in an attempt to stabilize the erratic fuel prices.

The CS who was speaking during the Sustainable Energy Conference at the KenGen Geothermal Spa in Naivasha, reiterated that the situation was not unique to Kenya but that the Government aims to tap more into renewable energy in an attempt to end the recurring fuel crisis.

“We are still taking some stabilisation measures. The situation globally underscores the need for harnessing renewable energy sources,” Dr Juma said.

Energy Cabinet Secretary Monica Juma at the Sustainable Energy Conference at Olkaria in Naivasha on June 16, 2022. Photo credit: Twitter Pulse Live Kenya

Other factors contributing to fuel crisis

CS Juma further revealed that even though the situation is bad in Kenya, it cannot be compared to other countries. She referenced to the unprecedented COVID-19 pandemic as well as a delay in rainfall as some of the factors that also contributed to the high cost of living.

However, she concluded that the state’s move to diversify sources of electricity such as directing more resources to developing geothermal, hydropower and wind energy will eventually ensure Kenya establishes itself as a continental powerhouse in clean energy.

“In the last 10 years, Kenya has become one of the continental powerhouses in clean energy generation. This all started with one goal which was universal access to electricity for all Kenyans,” she said.

A man with jerrycans waits to buy fuel in Eldoret town on April 3, 2022 amid a biting shortage. Kenya is staring at a fuel crisis due to delays in subsidy payouts by the government. Jared Naytaya | Nation Media Group Pulse Live Kenya

Hike in fare prices

The comments from CS Juma come just hours after the Matatu Owners Association signalled a hike in fare prices after the Energy and Petroleum Regulatory Authority (EPRA) increased the price of diesel and petrol for the months of June and July.

The Matatu Owners Association has given its members the go-ahead to raise fare prices for various routes. Users of some routes will experience an increase between Sh20 and Sh50.

On Tuesday, June 14, EPRA announced an increase in fuel prices in its monthly review. EPRA issued a statement informing Kenyans that the price of fuel and diesel has increased by Sh9.

Petrol will cost Sh159.12 per litre, up from Sh150.12, diesel will cost Sh140, up from Sh131, and kerosene will cost Sh127, up from Sh118.94 per litre, under the new price.