Reform fuel subsidies to cushion them from politics, achieve goals

Fuel2

KRA collected an estimated Sh164.03 billion in fuel taxes between last July and December. PHOTO | SHUTTERSTOCK

In a free-market system like Kenya, the forces of supply and demand ought to determine fuel prices. But fuel has been a political tool in the country, often used to woo voters during elections.

Last year, for example, President William Ruto promised voters that removing the fuel subsidy would stabilise fuel prices, a concept that has proven to be economically unfeasible.

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Note: The results are not exact but very close to the actual.