Kenyans are grappling with costly electricity and fuel, contrary to earlier promises by President William Ruto’s administration to keep the two critical commodities affordable.
Electricity costs went up from April 1 in the wake of tariff reviews that saw prices jump by between 15 percent and 20 percent while the cost of fuel significantly went up after the doubling of Value Added Tax (VAT) to 16 percent three months later.
The higher electricity prices came barely three months after Dr Ruto sought to assure Kenyans that tariffs would be reviewed to make the commodity more affordable to ease the burden on homes besides protecting businesses against a spike in operational costs.
“In three months, we will have public consultation to ensure that we have tariffs that are affordable to those at the bottom of the economic pyramid and our manufacturers,” Dr Ruto said in January.
Months into the high electricity prices, the new administration successfully lobbied Parliament to double VAT on fuel effective July through the Finance Act, 2023, pushing the cost of fuel by a range of Sh11 to Sh13 a litre.
A litre of Super petrol rose highest at Sh13.49 followed by that of diesel at Sh12.39 and kerosene at Sh11.96 on the new VAT rate, which combined with the removal of the fuel subsidies pushed prices to record highs.
