Parliament Overrules Azimio la Umoja’s Bid, Approves 16% Fuel Price Hike
The failure of Azimio la Umoja’s effort to prevent President William Ruto from approving the 16% increase in fuel products resulted from the approval of the increase by Parliament.
This was the result of a failed attempt to amend a section of the Finance Bill 2023 during voting on Wednesday, June 21 at the National Assembly.
184 individuals voted in favor of the proposal, while only 88 opposed it.
“A total of 272 individuals cast ballots. “There were 184 in favor and 88 opposed,” announced Gilgil MP Martha Wangari, who presided over the session, following the conclusion of the vote.
The approval followed a heated parliamentary debate in which Azimio advocated for the VAT to remain at 8% while Kenya argued that the increase would provide sufficient funds for the government to stabilize the economy.
Kuria Kimani, chairman of the Finance and Planning Committee of the National Assembly, defended the increase by noting that it will help the Kenya Kwanza government eliminate the costly subsidy program.
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The minority leader of the Azimio team, Opiyo Wandayi, argued that a 16 percent increase in the value-added tax would increase the cost of living.
Wandayi insisted, “If there is one thing that will increase the cost of living across the board, it is this proposed increase in the VAT on fuel.”
What had Ruto said?
President Ruto had previously defended the increase, estimating that it would enable his administration to raise Ksh50 billion – funds that he insisted would be used for nationwide road projects.
Ruto stated during a joint media interview at State House, “This 8% increase will give us approximately 50 billion shillings and allow us to begin addressing the problem of roads in our country. However, to offset this, I have removed a 3.5% road development levy, 2% Import Declaration Fee (IDF), and 8% VAT on gas.”
Despite his explanation, players in the fuel industry warned that the increase would cause the price of the product to reach Ksh200, negatively impacting transportation and other economic sectors.
The operators of public transportation have also announced that the increase will require them to raise fares.
The Energy Petroleum Regulatory Authority (EPRA) reduced the price of super petrol by Ksh0.66 to Ksh180.4 per liter on Wednesday, June 14.
In contrast, diesel was reduced by Ksh1.12 to retail at Ksh167.28.
Parliament Overrules Azimio la Umoja’s Bid, Approves 16% Fuel Price Hike
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