Former Kibaki Strategist Gives Ruto 5 Ways To Slash Fuel And Electricity Prices
A previous contender for the presidency has urged President William Ruto to reduce the prices of fuel and electricity, asserting that the high costs of these commodities are causing an unsustainable burden on the cost of living.
Esther Waringa, the ambassador who played a strategic role in former President Mwai Kibaki’s campaign, contended that imposing taxes on the citizens hindered the overall progress and development of Kenya.
She continued to assert that the power and fuel industries, where Ruto imposed the most significant taxes, should undergo a downward adjustment of prices. This, she argued, would stimulate development and draw in investors.
Waringa, the President of Public Service Governance, suggested that to reduce living expenses, the government should focus on updating energy tariffs.
In particular, the aim is to decrease the current nine taxes imposed on petroleum products to four. Waringa suggests that, instead of the government collecting Ksh79.32 in tax for each liter of fuel, it should opt for Ksh55.
She urged the Head of State to reduce the Value Added Tax (VAT) on petroleum products from 16 percent back to eight.
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Waringa suggested that to promote competitive bidding in the petroleum industry and ensure affordable market access independent of government-to-government agreements, the state should consider implementing the Petroleum Development Levy. This approach would lead to a decrease in taxation and contribute to stabilizing the costs associated with oil.
“We are here to advise the government that there are multiple alternatives to raise government development funds other than taxing the already burdened Kenyans,” she told the press in Nairobi.
“This is because one of the greatest reasons why governments are in power is to give an enabling and conducive environment for its people to live in their country.”
In the recent Finance Act, President William Ruto eliminated the fuel subsidies established by his predecessor and raised the Value Added Tax (VAT) on fuel from 8 percent to 16 percent.
Waringa, who has affirmed her candidacy for the 2027 Presidential election, contended that the taxes were excessively harsh and deterred investors from establishing businesses in Kenya.
“The high cost of doing business is discouraging investors and befitting our neighboring countries with investments. Consumers in Kenya pay very heavily for power consumption than in our neighboring countries,” she added.
Waringa also suggested that the government take measures to stabilize the shilling, which is currently valued at Kh160 about the dollar.
Former Kibaki Strategist Gives Ruto 5 Ways To Slash Fuel And Electricity Prices
