Deputy President Kithure Kindiki has defended the government's fuel taxation policy, saying it is necessary to sustain critical public services even as Kenyans feel the pressure of rising fuel costs.

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In a statement on Tuesday, May 19, Kindiki stated that the government has taken steps to cushion citizens against global fuel price shocks, including subsidies and adjustments to fuel taxes.

However, the DP said taxes cannot be reduced further, stating that the remaining tax component is essential for national development priorities.

Kindiki cited road construction, the education sector, and social protection programmes as key areas the tax currently supports.

📌 What You Need to Know

"The remaining portion of tax is essential for the construction of our road infrastructure and the maintenance of the roads to support the economy, and the right balances must be maintained to ensure that as we sort out the fuel price issue, we do not disrupt the funding for other equally important sectors like education and social services," he stated.

He further says that part of the funding collected from fuel levies is directly used in the construction and maintenance of road infrastructure, arguing that a balance must be maintained to ensure that relief measures do not undermine other key sectors.

His statement comes amid a standoff between the government and the transport sector operators following a strike that commenced on Monday, May 18, and has entered its second day on Tuesday.

The operators are demanding a Ksh 46 reduction in fuel prices, while the government proposes a Ksh 10 reduction, which the operators have rejected.

Kindiki noted that the government has already spent billions of shillings in the last two months to cushion consumers from global price spikes. He pointed to ongoing government interventions to ease the burden of high fuel prices, including reductions in VAT on petroleum products and subsidies to stabilize pump prices.

The Energy and Petroleum Regulatory Authority (EPRA) on Monday evening reduced diesel prices by Ksh 10 to retail at Ksh 232.86, while Kerosene prices were increased by Ksh 38.60 to retail at Ksh 191.38.

📰 Source: Kenyans.co.ke