Deputy President Rigathi Gachagua has raised concerns about the Israel-Hamas conflict’s potential impact on fuel prices, just a week after the Energy and Petroleum Regulatory Authority (EPRA) raised fuel prices in Kenya.
Speaking to a gathering of professionals and politicians from the Mt. Kenya region, Gachagua defended the government, stating that the circumstances affecting fuel costs were beyond their control.
Gachagua argued that the escalating crisis in Israel and Palestine could further strain the already high fuel prices in Kenya.
While many have accused the government of being responsible for the rising fuel costs, Gachagua maintained that no responsible government would intentionally increase fuel prices.
He pointed out that Kenya’s fuel prices were comparable to those of neighboring countries in the East African Community Bloc, such as Tanzania, Uganda, Burundi, and Rwanda.
Additionally, Gachagua ruled out the possibility of the government reinstating a fuel subsidy, citing the need to raise taxes to cover the costs.
Gachagua also highlighted the financial challenges facing Kenya, attributing them to a USD 2 billion Eurobond loan that, in his view, was not well-planned.
He expressed concern over the loan’s high interest rate, which he described as nearly unmanageable.
According to him, the country’s entire revenue collection is depleted by debt repayment and salary payments, leaving little for development.
