Doubling Fuel Tax: Ruto Unveils Benefits for Kenyans
President William Ruto explained how Kenyans will benefit from the increase in fuel tax from 8% to 16% on Sunday, May 14.
During a joint interview with the media at State House in Nairobi, the president explained that the double tax would ultimately benefit Kenyans.
Ruto explained that the high taxes would close loopholes in the fuel industry and release funds for development.
“When I arrived at the office, I discovered that we had committed Ksh900 billion to roads; I worked with various departments to reduce this amount to Ksh680 billion.”
“Money is required to complete these roads. Everywhere I go, Kenyans tell me they need roads, he explained, explaining why his administration needed the additional revenue from the fuel fund.
Ruto disclosed that the additional 8% will generate Ksh50 billion. Which will be invested in road infrastructure development.
Second, the President disclosed that cartels were using the system to defraud Kenyans.
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“Different interest rates, one at 8% and another at 16% posed a problem of integrity.
“People were exploiting it to manipulate the system. My advisors told me we must eliminate this loophole, so the tax rate was standardized to 16%.
Ruto defended his administration against claims that the tax increase would be detrimental to Kenyans. By stating that it was well-balanced.
“I have established checks and balances to ensure that the increased tax will not negatively impact Kenyans.
“I have eliminated 3.5% of the road development levy on fuel and 2% of the IDF fuel levy,” he explained.
President Ruto further criticized the administration of former President Uhuru Kenyatta for engineering a fuel crisis.
“Upon assuming office, I discovered that the previous administration had promised Ksh65 billion to oil marketers for Ksh15 billion.
Ruto explained the cause of high fuel prices by saying, “I assembled a team of advisors, and we determined that there was no fuel crisis, but rather an economic and dollar issue.”
The President explained that reintroducing the Interbank Forex Market relieved dollar pressure.
Doubling Fuel Tax: Ruto Unveils Benefits for Kenyans
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