Kiharu Member of Parliament Ndindi Nyoro has spoken out against the recent rise in fuel prices, accusing the government of misleading the public and engaging in questionable borrowing practices that could harm Kenya’s financial future.
Nyoro rubbished the Ministry of Energy’s explanation issued on Tuesday that blamed the price surge on rising global oil prices. He argued that international market trends don’t support that claim.
“Global oil prices peaked last year, not this year,” Nyoro said.
According to the outspoken lawmaker, the real drivers of the high fuel prices are excessive domestic taxation and the controversial securitisation of fuel levies. He revealed that over Ksh80 per litre of petrol and Ksh76 for other fuels go directly into taxes and levies.
“Out of the total cost per litre, more than Ksh 80 for petrol and Ksh 76 for other fuels go directly into taxes and levies,” Nyoro revealed.
Nyoro pointed out that in an oil-producing country like Kenya, tax policy should act as a shield for consumers during times of global price volatility. However, he accused the government of doing the exact opposite – using tax as a tool to burden rather than protect citizens.
He further exposed that in 2023, the government quietly introduced a Ksh7-per-litre fuel levy just as global oil prices were falling, effectively robbing Kenyans of potential price relief at the pump.
Nyoro Exposes Secretive Ksh175B Government Borrowing
More troubling, Nyoro claimed, is the government’s move to securitise the levy and borrow Ksh175 billion against it, a move allegedly executed without any public disclosure or parliamentary oversight.
“This borrowing is not captured in official debt records, and Parliament was never consulted. That raises grave concerns about transparency, legality, and long-term fiscal sustainability,” Nyoro warned.
Nyoro also raised serious questions about the identity of the lenders, the interest rates attached to the borrowing, and the long-term impact such deals could have on Kenya’s economic stability.
“We are essentially spending money today that belongs to future budgets,” he warned. “This undermines financial planning for coming administrations and risks mortgaging the country’s revenue streams.”
He expressed concern that allowing public levies to be used as collateral without oversight sets a dangerous precedent.
“If public levies can be used as collateral for debt without oversight, what stops future governments from pledging VAT, PAYE, or even NHIF contributions? This sets a dangerous precedent that threatens Kenya’s financial sovereignty,” Nyoro added.
https://nairobiwire.com/2025/07/ndindi-nyoro-accuses-govt-of-misleading-kenyans-on-fuel-prices-and-secret-borrowing.html
