Deputy President Kithure Kindiki has announced a series of government measures aimed at cushioning Kenyans from the sharp rise in global fuel prices triggered by the ongoing conflict involving the United States, Israel and Iran.
In a statement, Kindiki said the war had disrupted global fuel supply chains, particularly following the effective closure of the Strait of Hormuz, one of the world’s key oil transit routes.
“The Government has taken measures to mitigate against the unprecedented spike in global fuel prices occasioned by the US/Israel-Iran war,” Kindiki said.
He noted that the closure of the Strait of Hormuz had forced ships to take longer alternative routes while insurance costs for cargo vessels had risen significantly.
“With the effective closure of the Strait of Hormuz, ships are taking longer routes and insurance costs have soared to record highs,” he stated.
The Deputy President revealed that the government had already implemented tax relief measures to stabilize fuel prices locally.
“The Government has already reduced VAT on fuel from 16% to 8%, while 12 billion shillings from the fuel stabilization fund have been applied to manage prices, otherwise the prices would have shot to 300 shillings per litre by now,” he said.
Kindiki further disclosed that President William Ruto had directed an inter-ministerial team to engage stakeholders and explore additional interventions aimed at restoring stability within the transport and energy sectors.
“President William Ruto has ordered an interministerial engagement of Cabinet Secretaries responsible for the National Treasury, Energy, Transport and Interior to engage with stakeholders to see what additional measures are necessary, and to make sure normalcy in the transport sector returns as soon as possible,” he said.
