- President William Ruto in his inaugural address has indicated some significant policy shifts. He said that the economy cannot afford consumption subsidies anymore and hinted that he proposes to drop the fuel subsidy.
President William Ruto in his inaugural address has indicated some significant policy shifts. He said that the economy cannot afford consumption subsidies anymore and hinted that he proposes to drop the fuel subsidy. He said that he would prefer to leave the prices of food and fuel to be determined by the market forces of supply and demand. The move will see Kenyans paying more for transportation and production. He explained that the fuel subsidy till the end of the financial year, will cost the taxpayer Sh280 billion. He added that the subsidies abuse and distort markets to create uncertainty and artificial shortages.
According to reports, Kenya has spent an average of Sh9 billion to subsidise diesel, super petrol and kerosene since April 2021. The Energy and Petroleum Regulatory Authority (Epra) is expected to announce new monthly prices for the period ending October 14.
There has been serious concern over the rising cost of living. Removal of fuel cost stabilisation programme could push the pump prices above Sh200 per litre. After the government’s failed subsidy deal with Millers in July, the cost of a two-kilogramme packet of staple maize flour meal has remained at Sh200 on average. He said that his priority will be to make fertiliser, good-quality seeds and other agricultural inputs affordable and available to support production.
The announcement to discontinue subsidies is in line with the commitments made to the International Monetary Fund (IMF) by the government of President Uhuru Kenyatta. He had agreed to end the subsidies by October.
Also read;
https://trendsnafrica.com/kenyas-new-president-starts-reproaching-exercises-with-opponents/
https://trendsnafrica.com/daunting-tasks-ahead-for-president-william-samoei-ruto-2/
