Kenya staring at transport crisis as oil fuel prices skyrocket
By Fauxile Kibet
Despite Kenya announcing it had discovered oil deposits in Turkana County, North of the country, the hopes of Kenyans enjoying cheaper oil seem to be a just but a dream.
In June, the East African nation flagged off transportation of the first oil barrels which saw the country join its neighbor Uganda as the only two oil-producing nations in East Africa.
However, the oil that was transported in an experiment program Early Oil Pilot Scheme (EOPS) was stored in the coastal town of Mombasa as the country looks for viable markets.
But even as Kenya looks for ways to market its produce, oil prices in the country hit record highs Sunday – causing an uproar among citizens and law makers who protested the move by the country’s Treasury to impose a 16% Value Added Tax (V.A.T) on fuel.
On Sunday, a section of opposition Members of Parliament gave a 72-hour ultimatum to Treasury Cabinet Secretary Henry Rotich to reconsider the move or face impeachment.
“The new tax measure will lead to high commodities prices and transport cost,” the MPs said.
The MPs who had earlier rejected the proposal in parliament and criticized the Cabinet Secretary for defying them said that Mr. Rotich was courting impeachment.
“The CS should prepare to bear the consequences of forcing heavy prices on Kenyans despite Parliament’s intervention,” Bomet Central MP Ronald Tonui said.
A litre of petrol which retailed at $1 has now jumped to $1.3 dollars.
DEMOS
On Monday, several oil distributors parked their trucks at the depots in solidarity with a strike called by the Motorists’ Association of Kenya.
The strike according to the petrol distributors will go on until the Kenyan government scraps off the V.A.T on fuel.
A statement signed by the Motorists’ Association of Kenya chairperson Peter Murima called on its members to boycott the increased fuel prices.
“We, therefore, wish to call upon motorists to again express their anger tomorrow Monday 3rd and Tuesday 4th and if possible Wednesday by boycotting fuel and participating in a strike of not going to work in the morning as much as possible,” reads the statement.
The 16% V.A.T on fuel has sparked public outrage with public transport operators increasing fares.