Saboti Member of Parliament Caleb Amisi has urged authorities to decrease the value-added tax (VAT) on fuel from 16 percent to 8 percent.
The parliamentarian cautioned that Kenyans confront an approaching fuel crisis stemming from international conflicts.
He highlighted the expected consequences of the Iran-U.S. conflict on worldwide oil availability and emphasized that the administration must act promptly to protect citizens from escalating fuel expenses.
“We would have expected that the government would have already declared a VAT reduction, if not complete elimination of the 16 percent VAT, then at least a reduction to 8 percent,” the MP stated.
He contended that reducing the tax would alleviate financial strain on families by boosting available income during a period when fuel prices are projected to increase.
The Saboti MP warned that Kenya’s reliance on imported fuel renders it especially susceptible to external pressures, emphasizing that the nation cannot isolate itself from worldwide market disturbances.
“This would enable Kenyans to have disposable funds to navigate through the fuel crisis, as it is imminent.” Kenya does not operate in isolation. Kenya exists within the international community. We are globally connected. We are not a fuel- or oil-rich economy. We rely on other nations,” he explained.
He added that the impending crisis is foreseeable and should not catch decision-makers unprepared, urging the administration to present a clear response plan.
“It is not complicated that we will experience an impending fuel crisis due to Iran and other international tensions. This is not a situation that Kenyans can simply observe and wait,” he stated.
The MP criticized what he termed as insufficient preparation, noting that unlike abrupt emergencies like the COVID-19 pandemic, the current circumstances can be predicted and addressed.
“This is not COVID-19 which emerged as a pandemic, as an emergency. This is a predictable situation, and the Kenyan government must address it and provide Kenyans with a proper plan on how they will manage this period of fuel crisis,” Amisi added.
He stated that rapid tax modifications and policy transparency would be essential in protecting Kenyans from the complete effects of the anticipated increase in fuel prices.
Meanwhile, Energy Cabinet Secretary Opiyo Wandayi sought to alleviate public concerns following a series of resignations and growing controversy in the petroleum industry.
In a statement, the Cabinet Secretary stated that fuel supplies remain stable and that the administration has implemented measures to safeguard consumers from possible harm. Wandayi acknowledged the “recent developments” within the Ministry of Energy and Petroleum and its affiliated organizations.
He mentioned the departure of multiple high-ranking officials following the oil import controversy but affirmed that the situation is completely under control. He disclosed that the government suspended the arrival of a second fuel shipment after new information surfaced regarding a prior consignment now being investigated.
The action, the CS explained, was intended to protect public welfare and prevent recurrence of dubious dealings.
“We have adequate reserves of petroleum products to satisfy current requirements,” Wandayi stated.