By Brian Okoth
When President William Ruto was on the campaign trail seeking Kenyans' votes, he promised to lower the cost of living, and bring down the price of fuel which, he said, was ridiculously high.
At the time, Kenya was under the reign of fourth President Uhuru Kenyatta, under whom Ruto served as deputy.
The two fell out shortly after the August 8, 2017 General Election, when Kenyatta struck a peace pact with veteran politician and opposition leader Raila Odinga.
Ruto, who was eyeing the presidency, analysed the low-income earners' plight, and crafted key messages that resonated with them.
In one of his campaign stopovers in the Western Kenya town of Kakamega, ahead of the August 9, 2022 General Election, President Ruto said that the Kenyatta-Odinga duo was planning his failure at the ballot instead of "addressing the pressing problem of high fuel prices in Kenya."
"Fuel prices are ridiculously high. Instead of planning my defeat at the ballot box, plan how to reduce the cost of fuel in the country," the president said at the time, in a veiled message to Kenyatta.
Successful campaign
Ruto went ahead to win the election, albeit by a slim margin against his main challenger Odinga. Ruto was sworn into office as Kenya's fifth president on September 13, 2022.
At the time, a litre of petrol was retailing at 159 Kenyan shillings ($1.34), while diesel was going for Ksh140 ($1.17). Kerosene, on the other hand, was retailing at Ksh127.94 ($1.07).
Today (October 2023), a litre of petrol in Kenya's capital Nairobi is selling at Ksh217.36 ($1.47), diesel Ksh205.47 ($1.39) and kerosene Ksh205.06 ($1.39).
The difference in the price of kerosene – between October 2023 and September 2022 – is Ksh77, the highest compared to diesel (Ksh65) and petrol (Ksh58).
The hiking of Value Added Tax (VAT) on petroleum products – from 8% to 16% – is a partial reason for the increment in market prices of fuel in Kenya.
The new tax was implemented in July after the disputed Finance Act 2023 was passed into law.
President Ruto also scrapped fuel subsidy which was introduced by his predecessor Kenyatta in October 2021, terming it "unsustainable" and a "burden on Kenyans."
Doing it 'for the better’
During a media interview in May 2023, Ruto defended his administration's decision to raise the VAT on fuel from 8% to 16%.
"I said, yes, we are going to increase the VAT on fuel for two reasons: number one, having differential (tax) rates, one at 8% and the other at 16%, poses an integrity problem. Number two, the additional 8% tax on fuel would give us about Ksh50 billion ($364.3 million), which will help in dealing with the problem of (poor) roads across the country," he said on May 14 during a joint media interview in Kenya.
In the coastal city of Mombasa, several residents tell TRT Afrika that life has become difficult for them due to the high cost of fuel.
Raphael Odieny, a middle-aged man in the port city, said: "Kenyans cannot move about easily because of high fuel prices. Children have closed schools, but we can't take them to the countryside for end of the year holidays because of high transport costs."
Odieny added that a few years ago, he used to pay slightly over Ksh1,500 ($14) to travel by bus to Kisumu from Mombasa, a distance of approximately 830 kilometres. Today, he says, he pays an average of Ksh3,500 ($24).
'Fuel runs our lives’
Another resident, Abubakar Maganga, told TRT Afrika: "Fuel runs our lives. Factories, transport and many other sectors depend on fuel. When fuel goes up, the price of everything goes up. I am urging President Ruto to have pity on us, the low-income earners. Let him find a way of reducing the cost of fuel. Let the economists in his team craft a solution that would provide relief to Kenyans."
Another resident of Mombasa, who identified himself only as Nour, said: "Prices of basic commodities have gone up. We understand that the global factors such as the war in Ukraine have affected fuel prices worldwide. The government, nonetheless, needs to come up with a solution to make fuel more affordable to the low-income earners."
A continental analysis of fuel prices show that Kenya has the 12th highest fuel costs in Africa, behind the Central African Republic, Zimbabwe, Malawi, Seychelles and seven other countries.
In the East African region, Kenya has the highest fuel prices.
A litre of petrol in Tanzania's commercial capital Dar es Salaam goes for $1.31 US, while in Uganda it costs $1.44. In Nairobi, it is $1.47.
Uganda, a landlocked country, imports 90% of its fuel through Kenya.
Not unique to Kenya
The skyrocketing prices of fuel is, however, not unique to Kenya, as its neighbours have also experienced a hike in fuel costs.
Kenya's energy regulator, EPRA, attributes the higher prices of fuel to the weakening of the Kenyan currency against the US dollar, an increase in the landed cost of oil, and the implementation of the new Value Added Tax on fuel.
EPRA revises fuel prices in Kenya on the 14th of every month.
Below is a summarised TikTok explainer about the Kenyan fuel promise:
