Treasury Cabinet Secretary John Mbadi has defended the recent increase in fuel prices in Kenya, pushing back against claims that the country’s fuel costs are significantly higher than those of its regional neighbours.
Speaking amid growing public concern over the rising cost of living, Mbadi questioned the basis of comparisons often made between Kenya, Uganda, and Tanzania.
Addressing the issue, Mbadi said he had repeatedly heard citizens argue that fuel is cheaper across the borders, but insisted that such assertions are not always supported by clear or consistent data.
“I hear people saying that fuel is cheaper in Uganda and Tanzania. Where is that evidence?” he posed, urging critics to rely on verified figures rather than assumptions.
The CS emphasized that while fuel prices in Kenya have indeed increased in recent months, the rate of increase remains relatively moderate when compared to neighbouring countries.
According to him, global factors such as fluctuations in international oil prices, exchange rates, and supply chain costs have affected all countries in the region, not just Kenya.
Mbadi explained that Kenya’s pricing structure is influenced by a range of variables, including import costs, taxes, and distribution expenses.
He noted that while taxes on fuel often draw criticism, they play a crucial role in supporting government programs and infrastructure development.
“We must look at the bigger picture,” he said, adding that government revenue generated from fuel taxes helps fund essential public services.
The remarks come at a time when Kenyans have been grappling with increased transport fares and the rising cost of basic commodities, largely driven by higher fuel prices.
Public dissatisfaction has been growing, with some citizens staging protests in various parts of the country, demanding government intervention to ease the burden.
Critics, however, argue that regardless of regional comparisons, the impact of higher fuel prices is being felt deeply at the household level.
Many contend that even a slight increase in fuel costs can trigger a chain reaction across the economy, affecting food prices, electricity, and overall living expenses.
For low- and middle-income earners, this has translated into reduced purchasing power and increased financial strain.
In response to these concerns, Mbadi reiterated that the government is aware of the challenges facing citizens and is working to strike a balance between maintaining economic stability and cushioning consumers.
He pointed out that abrupt or drastic reductions in fuel prices could have unintended consequences on government revenue and fiscal planning.
Economic analysts have offered mixed views on the issue. Some support the CS’s argument, noting that regional price comparisons can be misleading due to differences in tax regimes, subsidies, and currency performance.
Others, however, argue that transparency in pricing and clearer communication from the government could help build public trust and reduce speculation.
Meanwhile, stakeholders in the transport sector, including matatu operators and logistics companies, continue to call for measures that would lower operational costs.
They warn that without relief, businesses may be forced to pass on the burden to consumers, further driving up the cost of living.
As the debate continues, the focus remains on how best to address public concerns while ensuring economic sustainability.
Mbadi’s remarks have added a new dimension to the discussion, challenging commonly held perceptions and calling for a more data-driven approach to understanding fuel pricing in the region.
Ultimately, the issue of fuel prices remains a sensitive one, touching on the daily realities of millions of Kenyans.
While the government maintains that the increases are comparatively lower, many citizens are more concerned with the immediate impact on their livelihoods, highlighting the complex balance between policy, perception, and economic reality.