Kiharu Member of Parliament Ndindi Nyoro has urged the government to reduce taxes on fuel, citing the high cost of petrol and diesel despite a significant drop in global oil prices.
Nyoro shared his views on his X account on Tuesday, noting that while global oil prices fell from a peak of $116 per barrel in May 2022 to below $55 per barrel in December 2025, Kenyan consumers have not seen corresponding relief at the pump.
He attributed the high local fuel prices to the introduction of an 8% VAT in 2023 and an additional KSh 7 fuel levy in 2024, which he says add over KSh 25 per liter to the cost alongside other excise taxes.
“The time has come for Kenya to remove the KSh 7 fuel levy and reduce the 8% VAT on fuel,” Nyoro said. He added that banks involved in what he termed “illegal securitization” of the fuel levy, which has reportedly collected KSh 32 billion per year in advance, should be held accountable or offered a moratorium.
Nyoro argued that for non-oil-producing countries like Kenya, fuel taxes and levies have become the main tools for adjusting prices, but they currently make up around 50% of the pump price, among the highest in the world.
He also highlighted regional disparities, noting that petrol is cheaper in neighboring countries such as Uganda, Tanzania, and Rwanda despite their fuel passing through Kenya.
“Consumers have done their part by paying additional VAT and fuel levies as global prices fell. It is now time for the government to reciprocate and shield Kenyans from these high costs,” Nyoro said, urging swift policy intervention to support the economy and protect households from rising living costs.