By WMW
Tetu Member of Parliament Geoffrey Wandeto has proposed a series of emergency fiscal measures aimed at reducing fuel prices and cushioning Kenyans from the rising cost of living.
In a memorandum submitted to National Assembly Speaker Moses Wetang’ula, Wandeto called for urgent interventions to stabilize fuel prices and protect the economy from growing inflationary pressure.
The MP noted that diesel and petrol prices in Nairobi had risen to about KSh242.92 and KSh214.25 per litre respectively, warning that the continued increase was driving up transport, food, manufacturing, and construction costs.
Among the proposals, Wandeto wants the government to suspend the KSh4 Import Declaration Fee (IDF) on diesel cargo and zero-rate excise duty on diesel currently charged at KSh11.37 per litre.
He also proposed removal of the current eight percent Value Added Tax (VAT) on diesel and petrol, arguing that the measure would lower diesel prices by about KSh17.99 and petrol by KSh15.60 per litre.
The lawmaker further called for additional fuel stabilization support amounting to KSh2.5 billion per month for the next 90 days to subsidize diesel consumption estimated at 200 million litres monthly.
According to the memorandum dated May 18, the combined measures would reduce diesel prices by approximately KSh45.86 per litre, lowering the cost from KSh242.92 to about KSh197.06. Petrol prices would fall from KSh214.25 to approximately KSh198.65 per litre.
Wandeto argued that diesel remains central to Kenya’s economy as it powers transport, agriculture, manufacturing, and construction sectors.
“Without urgent intervention, the country risks deeper inflationary pressure, slower economic growth, reduced purchasing power and further strain on households and businesses,” he stated.
The MP also proposed temporarily opening bulk fuel importation outside the Government-to-Government fuel importation framework to increase competition and potentially lower fuel costs.
Additionally, he urged the National Treasury to prepare budgetary cost-cutting measures to offset reduced fuel tax revenues arising from the proposed interventions.
Wandeto acknowledged that the measures could create short-term fiscal strain but maintained they were necessary to protect livelihoods, sustain businesses, and prevent further economic hardship.
The proposals come amid growing pressure on Parliament and the government to review fuel taxes and levies following nationwide protests and public outrage over soaring fuel prices and the rising cost of living.
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