Ndindi Nyoro Clashes With MPs Over Ksh100 Billion Fuel Subsidy Funding Proposal

Kiharu Member of Parliament Ndindi Nyoro is pushing for a Ksh. 100 billion cut in overseas travel spending across the Executive, Legislature, and Judiciary. He wants to redirect the money to the Fuel Subsidy Fund to help bring down fuel prices.

During a presentation to the Departmental Committee on Budget on fuel price mitigation, Nyoro pointed to government spending as one reason petroleum import costs remain high in the country.

He argued that reducing foreign travel allocations across the three government arms would free up funds for more fuel subsidies. He also asked why some institutions, including State House, received a 25% increase in their budget allocations.

“Cut travel budgets for the entire government. Cut operation and maintenance spending. This will create resources that can be redirected to fuel subsidies,” Nyoro stated.

The former Budget Committee chair is also calling for the removal of the 8% Value Added Tax (VAT) on fuel and for a reduction of at least Ksh. 7 from the Road Maintenance Levy Fund (RMLF). He says these steps will help lessen the impact on consumers.

Committee members challenged his proposal.

“Reducing the Road Maintenance Levy Fund by Ksh. 7 contradicts what you said when you served as chair. You then claimed road construction stalled because the government lacked securitising for the road levy,” Walter Owino said.

Nyoro responded to the concerns by defending his plan.

“This Ksh. 7 deduction will allow the government to spare Kenyans from additional taxation by funding the Fuel Subsidy Fund. When I chaired the committee, I always pushed for fuel price reductions using other approaches,” he said.

Committee Chair Samuel Atandi questioned whether the government can safely reduce revenue while it also faces major spending needs.

“Given the heavy budget expenditure burden, we cannot simply cut off revenue,” Atandi said.

Nyoro also urged the full scrapping of the government-to-government (G-to-G) oil importation arrangement. He argued that it has failed to protect consumers from rising fuel prices.

“G-to-G costs us more due to issues around the oil source and because the government uses companies as proxies,” he said.

Later, the discussion moved to electricity costs. Lawmakers asked why Nyoro had not proposed similar interventions in the power sector.

“Why aren’t you proposing a reduction in electricity prices, or do you avoid it because you benefit from the arrangement?” Atandi asked.

Nyoro dismissed the accusation.

“The questions seem planned. Still, I’m better placed because I invest locally,” he replied.

Khwisero lawmaker Christopher Aseka also weighed in.

“You won’t touch electricity because you hold shares,” Aseka said.

Nyoro maintained that he had already addressed the issue.

“Aseka, you keep raising the same question about electricity prices, yet I have already answered it. You ask those questions because you intend to challenge my position. High electricity prices come from private firms supplying power,” he said.

The Departmental Committee on Budget is currently reviewing proposals to address rising fuel prices and plans to present a detailed report to the Committee of the Whole House.

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