President warns transporters against hiking fares

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President Uhuru Kenyatta, Deputy President William Ruto should ensure they deliver the government's promises
President Uhuru Kenyatta, Deputy President William Ruto should ensure they deliver the government's promises

President Uhuru Kenyatta has urged transporters not to take advantage of Kenyans by increasing fares beyond those recommended by NTSA. This comes days after he proposed a reduction of the fuel VAT by 50 percent from 16 percent to 8 percent. Speaking at the Jubilee Parliamentary Group meeting at State House, the President said any transporter who will increase fare beyond the recommended amount will lose their PSV licenses.

The reduction of the VAT from 16 percent to 8 percent signifies a reduction in pump prices, with petrol coming down to about Kshs 118 from Kshs 127, and diesel will come down to Kshs 107 from Kshs 115. During the Jubilee Parliamentary Group meeting, which brought together the Deputy President William Ruto, Secretary General Raphael Tuju, Majority leader Aden Duale and other leaders, it was agreed that the President’s proposal will be supported, with the second special sitting in parliament scheduled for Thursday. It was also agreed that there should be budgetary cuts to accommodate the reduction in VAT.

On Tuesday, NASA made it clear that they had conditionally agreed to support the President’s proposal to cut down the fuel VAT. They called for genuine austerity measures to cut down the state’s spending including cutting down extravagance, wastage and a shift in focus from infrastructural projects to social welfare projects that seek to benefit Kenyans, among other proposals.