Prices –Government has brought back the scrapped fuel subsidy programme that was started by retired head of State Uhuru Kenyatta before it was scrapped by Ruto’s government which cited corruption.
Energy and Petroleum Regulatory Authority (EPRA), on Monday, August 14, restored the subsidy which had been trashed on September 15 2022 by the current administration.
EPRA new price review has announced the return of the Petroleum Development Fund so that to help cushion citizens from higher fuel cost that was recently caused by doubling of the Value Added Tax VAT on fuel.
Through the controversial Finance Act 2023, the State announced a double on the VAT charges from the normal eight percent to 16 percent something that did not auger well with many Kenyans including businessmen.
According to the energy regulator, the increased landing costs of fuel also occasioned the return of the subsidies.
While scrapping the subsidy in September, Ruto said the billions used as subsidies had been directed to the pockets of a few individuals who did deliver services in during Uhuru’s tenure.
On Tuesday morning, Economic Advisor for the President David Ndii defended the return of the subsidy fund saying it is because their government will not tolerate acts of corruption with the money.
In its Monday update, the authority explained that the reintroduced Petroleum Development Fund will thus be used to compensate importers of the commodity at Ksh7.33, Ksh3.59 and Ksh 5.74 per litre of petrol, diesel & kerosene, respectively.
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