Ndindi Nyoro Proposes Fuel Tax Cuts to Lower Petrol and Diesel Prices
Ndindi Nyoro has proposed a series of fuel tax cuts, including scrapping VAT on fuel and reducing the Road Maintenance Levy Fund.
Kiharu MP Ndindi Nyoro. Photo/Courtesy
By Ruth Sang
A proposal by Ndindi Nyoro to reduce fuel prices has triggered fresh debate in Parliament after he tabled a series of tax and levy reduction proposals before the National Assembly Budget and Appropriations Committee.
The committee, chaired by Samuel Atandi, received Nyoro’s submissions outlining fiscal measures aimed at easing the rising cost of living and reducing pressure caused by high fuel prices.
Appearing before the committee on Wednesday, Nyoro proposed scrapping the 8 percent Value Added Tax (VAT) on fuel, reducing the Road Maintenance Levy Fund (RMLF) and reviewing margins within the petroleum supply and distribution chain.
He also recommended using surplus funds from the fuel stabilisation programme to cushion diesel prices and lower transport and production costs across the economy.
“The rise in fuel prices has a direct effect on the cost of food, transport and other basic commodities. These measures are intended to ease that burden on Kenyans,” Nyoro told the committee.
According to the lawmaker, the proposed interventions could lower petrol prices to around Sh187 per litre and diesel prices to approximately Sh189 per litre, potentially easing inflationary pressure on households and businesses.
Nyoro argued that the measures would require an estimated Sh14 billion to Sh15 billion adjustment, which could be financed through expenditure rationalisation and targeted budget cuts within the current financial year.
Members of the Budget and Appropriations Committee welcomed the proposals but raised concerns over their practicality and possible impact on government revenue and infrastructure financing.
Some lawmakers cautioned that reducing the Road Maintenance Levy Fund could affect funding for road projects and ongoing securitisation programmes linked to stalled infrastructure developments.
Committee Chairperson Samuel Atandi assured that the proposals would undergo a detailed technical review before any decision is made.
“We have listened carefully to the submissions made and the concerns raised by Hon. Nyoro,” Atandi said.
“As a Committee, we will interrogate the details further and consider them alongside other budget proposals before us,” he added.
Atandi further noted that the committee would work closely with the Parliamentary Budget Office to evaluate the fiscal implications of the recommendations.
The proposals come amid growing public concern over rising fuel prices and the increasing cost of living, making the debate on taxes, subsidies and public spending one of the key issues in the ongoing 2026/2027 budget process.
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