President William Ruto addressed the controversy surrounding the re-introduction of the fuel subsidy, clarifying the Kenya Kwanza government's stance and dispelling misconceptions surrounding the decision. Speaking at the 8th Devolution Conference 2023 in Uasin Gishu County, Ruto defended the move to implement the petroleum levy as a legally sanctioned measure, rather than reverting to the subsidy system established during the Jubilee Administration.
The President used the platform to firmly respond to critics, highlighting his administration's commitment to fiscal responsibility and debt reduction. Ruto voiced concern over the detrimental effects of excessive borrowing on Kenya's economy, emphasizing that his government remains steadfast in avoiding additional loans.
"We will not go back to subsidies of any nature that distort things and cause us a lot of unnecessary leakages," President Ruto affirmed, clearly stating his stance on the matter.
Addressing the media's coverage of the issue, Ruto expressed his dissatisfaction with the portrayal of the government's actions, asserting that the petroleum development levy is being utilized in accordance with the law. He underscored the purpose of the levy, explaining that it aims to support the growth of the petroleum industry and stabilize fuel prices during unforeseen hikes.
"On the subject of debt, I have made myself very clear - we are going to do more saving, we are going to raise local revenue in counties and stop corruption so that we have the money to run our show," Ruto declared, outlining his administration's multifaceted approach to financial management.
In a stern warning to corrupt leaders, President Ruto made it clear that his government would spare no effort in bringing accountability to those found guilty of corruption.
The fuel subsidy was reintroduced during the latest price review for the August - September period. The Energy and Petroleum Regulatory Authority (EPRA) cited increased fuel landing costs as the rationale behind the subsidy's reintroduction. Notably, the landing cost of Super Petrol saw a 6.84 percent increase, while Diesel and Kerosene recorded increases of 4.29 percent and 7.41 percent respectively.
President Ruto concluded his address by extending congratulations to the United States Ambassador to Kenya, Meg Whitman, applauding the commitment shown by the United States towards the development of the country. As Kenya continues to navigate complex economic challenges, President Ruto's clarifications shed light on the government's strategies and priorities in ensuring financial stability and growth.