Woe To Kenyans As Treasury Rejects A Ksh 5 Billion Request To Extend The Fuel Fund Subsidy

Responding to the parliament through the treasury principal, the treasury stated it could not honor the request due to a cash deficit in the kitty that was covering the consumers from high fuel prices since April.

Julius Muia added that the fuel fund subsidy is almost depleted as the end of the coverage is soon approaching, that is this month, September 2021.

The State had paid oil dealers Ksh 8.64 billion in compensation for the five months that fuel prices remained unchanged from the kitty that is estimated to hold more than Sh15 billion.

The announcement by the treasury responded to the petroleum ministry which had presented a Sh 5 billion request to extend the fuel fund subsidy

beyond September.

“We received a request for Sh5 billion in August. That request was meant for stabilization of petroleum prices for the month of September but unfortunately, the fund does not have that money and consequently, that request has not been honored,” Mr. Muia told the National Assembly Committee on Finance and National Planning on Wednesday, September 29.

Mr. Muia added that the kitty had a balance of Sh3.6 billion, raising questions on the expenditure of the billions of shillings collected through the levy since July last year.

The state had on Tuesday, September 14 had announced the highest fuel price in history, where petrol prices had increased by Ksh7.58 per liter to retail at Ksh134.72 in Nairobi while diesel increased by Ksh7.94 to retail at Ksh115 while kerosene spiked by Ksh12.97 to retail at Ksh110.2.