By WMW
The Democratic Party of Kenya (DP) yesterday accused the government of misleading Kenyans by attributing rising fuel prices and the high cost of living solely to tensions in the Middle East and disruptions around the Strait of Hormuz.
In a statement, party leader Justin Muturi said the current economic hardships facing Kenyans are largely the result of poor fiscal management, excessive taxation, opaque borrowing, and the securitization of fuel levy revenues.
The party argued that while international oil market disruptions may have some impact on global fuel prices, the biggest burden on Kenyan consumers is “homegrown.”
“The government cannot continue blaming foreign conflicts while ignoring its own fiscal excesses and policy failures,” Muturi said.
The party raised concern over the Road Maintenance Levy Fund (RMLF), which currently stands at KSh25 per litre of fuel, alleging that KSh12 from the levy has already been committed to secure infrastructure bonds and financing arrangements through Special Purpose Vehicles (SPVs).
According to the statement, the arrangements have enabled the government to raise nearly KSh300 billion upfront while effectively mortgaging future fuel levy collections.
The Democratic Party claimed the borrowing structure lacks adequate transparency and public participation, warning that it conceals the country’s true debt exposure and undermines constitutional principles on prudent public finance management.
The party also criticised continued funding of road agencies such as the Kenya Rural Roads Authority and the Kenya Urban Roads Authority despite worsening economic conditions.
Muturi argued that road functions are largely devolved and that Members of Parliament already receive substantial allocations through the National Government Constituencies Development Fund (NG-CDF) that can support local infrastructure projects.
“Instead of streamlining expenditure and cushioning struggling citizens, the government continues expanding bureaucratic road financing structures while millions of Kenyans cannot afford food, transport, or basic necessities,” the statement said.
The party compared the current economic situation to the COVID-19 pandemic period, saying the crisis requires urgent intervention and sacrifice from government.
Among the proposals put forward by the party are the immediate suspension and parliamentary review of all fuel levy securitization arrangements, full public disclosure of infrastructure bonds and SPV agreements tied to fuel levy collections, and a 50 percent reduction in the budgets of KeRRA and KURA until the economy stabilises.
The party also called for reprioritisation of public spending toward food security, healthcare, job creation, and direct household relief measures, alongside a comprehensive audit of pending road contracts and contractor payments under the two agencies.
“Kenyans are overtaxed, overburdened, and increasingly excluded from the economic priorities of their own government,” Muturi said.
The statement comes amid growing public anger over rising fuel prices that recently triggered nationwide protests, transport disruptions, and calls for Parliament to review taxes and levies imposed on petroleum products.
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