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Mbadi: Fuel Levy Vital for Road Maintenance

Kipkemboi Collins
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Mbadi: Fuel Levy Vital for Road Maintenance

Treasury CS John Mbadi has defended the continued application of the road maintenance levy on fuel, arguing that it remains a central pillar in financing Kenya’s road infrastructure and sustaining long-term economic development.

Mbadi noted that the levy, currently embedded in fuel prices, directly supports road maintenance and construction.

He cautioned that removing it would create immediate funding gaps that could slow down or halt ongoing and planned infrastructure projects.

According to him, the policy trade-off is unavoidable, without dedicated levies, critical public services would suffer.

Impact on Road Users and Transport Operations
He questioned whether road users, particularly public transport operators such as matatu drivers, would be willing to operate in increasingly bad roads if funding for maintenance were withdrawn.

With the rainy season having recently ended, he warned that poorly maintained roads would quickly become impassable, undermining mobility and economic activity.

Responding to public criticism that roads remain in poor condition despite multiple taxes and levies, Mbadi acknowledged the concerns but maintained that significant progress has been made.

He argued that Kenya has developed one of the most extensive paved road networks in the region, with over 20,000 kilometers of tarmacked roads, compared to some neighboring countries that have significantly lower coverage.

Mbadi: Fuel Levy Vital for Road Maintenance
Mbadi: Fuel Levy Vital for Road Maintenance
Kenya’s Regional Infrastructure Positioning
He positioned Kenya as a relatively advanced middle-income economy within the region, suggesting that infrastructure expansion must be sustained through consistent financing mechanisms rather than short-term political pressure.

Mbadi emphasized that the government continues to invest heavily in road development and maintenance across the country.

A key component of his defense centered on fiscal innovation, particularly the securitization of the seven-shilling fuel levy.

He explained that the levy has already been committed to financing road projects, including the resumption of previously stalled works. Any attempt to reverse it, he argued, would undermine existing financial arrangements and delay infrastructure delivery.

Pushback Against Populist Policy Calls
Mbadi also pushed back against what he described as populist calls for the removal of the levy, stating that such proposals are not economically viable given current budgetary obligations.

Instead, he stressed the importance of balancing public expectations with fiscal reality.

To cushion the economy and maintain stability, the Treasury has reportedly deployed the Stabilization Fund as part of broader measures to manage pressure on fuel prices and infrastructure financing.

Ultimately, Mbadi framed the debate as a choice between short-term political expediency and long-term national development, insisting that sustained investment in infrastructure remains essential for economic growth and regional competitiveness.

 

Fuel Hike Sparks Transport Paralysis, Kalonzo Blames Ruto

Kipkemboi Collins
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Fuel Hike Sparks Transport Paralysis, Kalonzo Blames Ruto

Wiper Party Leader Kalonzo Musyoka has condemned the ongoing national transport paralysis, linking it directly to recent fuel price increases and what he termed as “reckless economic management” by the government.

In a statement released on May 18, 2026, Kalonzo said hundreds of thousands of Kenyans including workers, students, traders, and families have been left stranded due to a crisis that was “both foreseeable and avoidable.”

According to Kalonzo, the Energy and Petroleum Regulatory Authority (EPRA) announced on May 14, 2026, a sharp rise in fuel prices, increasing diesel by KSh 46.29 per litre and super petrol by KSh 16.65 per litre.

Kalonzo argued that the decision was implemented without public consultation or sufficient safeguards for households already burdened by the high cost of living.

Transport Strike and National Paralysis
He further stated that the move has triggered widespread disruptions in the transport sector, with operators under the Transport Sector Alliance withdrawing services in protest.

The resulting strike has paralyzed mobility across major urban and rural corridors, affecting movement from coastal towns to western Kenya and northern trade routes.

Business leaders have also raised concerns over the ripple effects of the disruption. Supply chains have been interrupted, commodity prices are rising, and commercial activity has slowed significantly.

Kalonzo noted that essential goods, including food and fuel-dependent supplies, are becoming increasingly expensive, placing additional pressure on consumers.

Fuel Hike Sparks Transport Paralysis, Kalonzo Blames Ruto
Fuel Hike Sparks Transport Paralysis, Kalonzo Blames Ruto
Call for Government Accountability and Reform
“The economic consequences are already severe. Kenyans cannot continue absorbing policy shocks that ignore their daily realities,” Kalonzo said. He accused the government of failing to prioritize public welfare in its energy pricing framework.

Kalonzo issued three key demands to address the crisis. First, he called on the Cabinet Secretary for Energy, Hon. Opiyo Wandayi, to immediately reverse the fuel price adjustments and step down, arguing that accountability must follow policy failure.

Second, he urged President William Ruto to open urgent dialogue with the Transport Sector Alliance to resolve the strike and restore services.

Third, he demanded a transparent and long-term fuel pricing framework to stabilize costs and protect consumers from abrupt fluctuations.

He emphasized that the opposition, under the United Alternative Government and alongside the Wiper Patriotic Front and Azimio la Umoja One Kenya, stands with citizens affected by the crisis.

“This regime has abandoned its people, but we have not. Together, we shall Komboa Kenya,” Kalonzo stated, signaling continued political pressure as the transport standoff deepens.

 

Mbadi: Fuel Crisis Driven by Global Supply Shocks

Kipkemboi Collins
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0
Mbadi: Fuel Crisis Driven by Global Supply Shocks

Treasury CS John Mbadi has warned that Kenya is facing a serious transport disruption driven by a global fuel supply shock, cautioning that the situation reflects wider geopolitical and energy market instability rather than domestic policy failures alone.

Speaking on the ongoing strike that has paralyzed parts of the transport sector, Mbadi described the situation as “a big crisis,” noting that disruptions in fuel supply and pricing are now directly affecting mobility, logistics, and economic activity across the country.

He stressed that the government is concerned about the scale of disruption being experienced, especially in urban transport systems and freight operations.

Mbadi Says Crisis Driven by Global Energy Market Instability
However, the Treasury CS emphasized that the crisis must be understood in its global context.

According to him, high fuel prices are part of a broader international challenge affecting both developed and developing economies.

He pointed to recent high-level discussions during engagements with global financial institutions, including the World Bank and the IMF, where energy security dominated much of the agenda.

Mbadi highlighted concerns that the world could be heading toward a deeper fuel supply shock linked to geopolitical tensions and disruptions along key maritime routes.

He cited risks surrounding the Strait of Hormuz, a critical global oil transit corridor through which a significant portion of global crude oil flows. Any instability in such regions, he noted, has a direct ripple effect on global prices.

“The closure or disruption of key supply routes has serious implications for global oil supply,” Mbadi observed, adding that approximately 20% of global oil passes through strategic channels that are highly vulnerable to conflict-related disruptions.

Mbadi: Fuel Crisis Driven by Global Supply Shocks
Mbadi: Fuel Crisis Driven by Global Supply Shocks
Africa and Kenya Exposed to External Fuel Price Shocks
He warned that Africa, including Kenya, is particularly exposed because most of its refined fuel imports originate from these affected regions.

The Treasury CS further noted that the combination of external shocks and local distribution challenges has intensified pressure on transport operators, contributing to industrial action and service paralysis in parts of the country.

 

 

Karua Supports Peacefull Protests as Matatu Strike Hits Country

Kipkemboi Collins
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Karua Supports Peacefull Protests as Matatu Strike Hits Country

Martha Karua has criticized Kenya Kwanza administration for rising fuel prices and deteriorating economic conditions that affect Kenyan households, companies, and transportation services.

In a statement, the People’s Liberation Party leader expressed solidarity with citizens taking part in nationwide protests and the ongoing matatu operators’ strike, claiming that Kenyans had a constitutional right to peaceful expression, particularly in light of growing living costs.

Nationwide Transport Disruptions as Strike Bites
Her remarks come amid nationwide disruptions caused by a strike by petroleum users and public service vehicle operators protesting high pump prices, with transport, business operations, and daily livelihoods heavily affected.

Karua described the situation as a direct result of policy failure, arguing that punitive taxation and poor fiscal management have left ordinary Kenyans bearing excessive economic burdens.

She said transport operators are not striking to disrupt peace but because operating costs have become unsustainable due to fuel levies and rising taxes.

Government Response Under Fire
Karua also blasted government leadership, criticizing delayed reactions to the issue and demanded immediate action to protect citizens from future hardship.

She said that rising costs of fuel are having a knock-on effect on food, transportation, and business costs, exacerbating inflationary pressures throughout the economy.

Karua appealed for Kenyan unity and urged residents to continue participating in democratic processes, like as voting out leaders who do not prioritize economic stability or accountability.

She emphasized that leadership must prioritise service delivery, careful economic management, and the protection of wananchi from economic shocks, warning that ongoing hardship might erode public confidence in government institutions.

“Kenyans deserve leaders who listen and act decisively,” she said, adding that economic justice must be restored through fair taxation and accountability.

Karua Supports Peacefull Protests as Matatu Strike Hits Country
Karua Supports Peacefull Protests as Matatu Strike Hits Country
Support for Peaceful Mass Action
Karua reaffirmed her support for peaceful mass action, stating that protests remain a legitimate democratic tool when citizens are faced with prolonged economic distress.

She urged authorities to engage stakeholders in the transport sector and implement immediate policy interventions to stabilise fuel prices and restore normalcy in public transport operations across the country.

She concluded by calling for accountable governance and inclusive economic planning, insisting that Kenya’s economic recovery depends on leadership that places citizens at the centre of decision-making.

She reiterated that peaceful protest should never be criminalised, especially when driven by genuine economic grievances affecting millions of Kenyans.

Karua called on institutions of government to act with urgency and empathy, warning that failure to address the fuel crisis risks deepening inequality, economic instability, and public frustration across the country.

 

Omtatah: End Political Distraction, Focus on Accountability

Kipkemboi Collins
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0
Omtatah: End Political Distraction, Focus on Accountability

Senator Okiya Omtatah has called on Kenyans to reject political manipulation and focus on accountability, warning that elite unity among political actors often masks deeper systemic failures rather than solving them.

His remarks come amid growing political realignments and heightened public debate over governance, corruption, and economic inequality.

“When you hear politicians suddenly uniting to tell you who the ‘enemy’ is, pause and ask yourself one question: who benefits when citizens are divided and distracted?” Omtatah said, urging citizens to interrogate the timing and intent behind political messaging.

According to Senator Omtatah, the recurring pattern in Kenya’s political landscape is not genuine unity for public good, but strategic coordination among leaders to shift public attention away from structural problems.

He argues that this dynamic allows corruption, unemployment, impunity, and economic injustice to persist without meaningful challenge.

Political Distraction and Systemic Accountability
Omtatah frames the current political environment as one where leaders frequently “close ranks” not to defend citizens, but to preserve systems that sustain elite interests.

In his view, moments of heightened scrutiny over governance are often met with the rapid identification of a “common enemy,” effectively redirecting public frustration away from institutional reform.

He likens this pattern to a cycle of distraction, where citizens are encouraged to engage in internal divisions while deeper governance failures remain intact.

The senator emphasizes that accountability should not be filtered through tribal, regional, or partisan lenses, but should instead be grounded in universal principles of justice and transparency.

“The real struggle is not between ordinary citizens,” Omtatah added. “The real struggle is between a corrupt system and the people paying the price for it every day.”

Omtatah: End Political Distraction, Focus on Accountability
Omtatah: End Political Distraction, Focus on Accountability
Principles Over Political Camps
Omtatah’s message calls for a shift in civic consciousness, urging Kenyans to move beyond political allegiance and toward issue-based engagement.

He stresses that justice, accountability, and truth must remain non-partisan values, especially in a context where political loyalty often outweighs policy substance.

He further warns that failure to uphold these principles risks deepening public mistrust in institutions and weakening democratic accountability mechanisms.

The senator’s remarks add to ongoing national conversations around governance reform and economic pressure.

As citizens continue to grapple with rising cost of living and concerns over public resource management, his statement positions civic vigilance as a critical tool for safeguarding national interest.

 

Maraga Weighs In on Rising Fuel Costs, Calls for VAT Exemption and Levy Cuts

Kipkemboi Collins
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0
Maraga Weighs In on Rising Fuel Costs, Calls for VAT Exemption and Levy Cuts

Former Chief Justice David Maraga has expressed solidarity with Kenyans grappling with rising cost of living and what he describes as governance failures contributing to the paralysis of the transport sector.

In a written statement, Maraga linked the current economic pressure to global geopolitical disruptions, noting that while the fuel crisis is partly attributed to the war against Iran, governments must act decisively to cushion citizens from inflationary shocks.

He argued that responsible leadership requires immediate fiscal and policy interventions to stabilize essential commodities.

Proposal for Emergency Parliamentary Measures
As an urgent first step, Maraga urged Parliament to convene and implement three key measures, exemption of all fuel products from VAT, temporary removal of fuel levies to ease pressure on pump prices, and a reallocation of public resources away from what he termed “budgeted corruption” toward mitigating the energy and cost-of-living crisis.

His remarks come at a time when the Energy and Petroleum Regulatory Authority (EPRA) announced a sharp upward revision in fuel prices for the period 15th May to 14th June 2026. Super Petrol increased by Ksh 16.65 per litre, while diesel rose by Ksh 46.29 per litre.

Maraga Weighs In on Rising Fuel Costs, Calls for VAT Exemption and Levy Cuts
Maraga Weighs In on Rising Fuel Costs, Calls for VAT Exemption and Levy Cuts

The price hike has led to a nationwide strike by matatu operators, paralysing the transport system across the country.

EPRA attributes the steep adjustments to a 20.32% increase in the landed cost of diesel, which rose from US dollar 1,073.82 to US dollar 1,291.98 per cubic metre.

The regulator’s pricing review has triggered renewed public and policy debate on the effectiveness of existing government interventions aimed at stabilizing fuel costs.

Maraga’s intervention adds to growing public scrutiny of fiscal policy responses to global energy volatility, with increasing calls for structural reforms to cushion vulnerable populations while ensuring economic stability.

 

Faith Odhiambo Warns High Fuel Prices Could Trigger Wider Economic Crisis

Kipkemboi Collins
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0
Faith Odhiambo Warns High Fuel Prices Could Trigger Wider Economic Crisis

Former LSK President Faith Odhiambo has warned that rising fuel prices and the ongoing nationwide motorists’ strike could push millions of Kenyans into deeper economic hardship if urgent action is not taken.

In a written statement, Odhiambo described fuel as the backbone of movement, trade and access to essential services, warning that any sharp increase in prices immediately ripples through the wider economy.

According to her, the impact is already being felt across households and businesses as transport costs rise, food prices increase and small enterprises struggle to remain operational.

“Fuel is the backbone of movement, trade and access to services which keeps our economy active and fluid. When its price spikes, the effect is immediate,” she said.

She noted that for ordinary Kenyans, the situation is quickly becoming unsustainable, with many families now forced to choose between transport, food and other basic necessities.

Transport Strike Raises Economic Pressure
Odhiambo said the ongoing strike by the motorists’ association is exposing the fragility of Kenya’s economic stability amid persistently high fuel costs.

The nationwide transport disruption is expected to affect supply chains, delay deliveries and significantly reduce economic activity in both urban and rural areas.

Workers in several sectors are already struggling to access their workplaces, while traders and farmers risk losing income as goods fail to reach markets on time.

She further warned that delays in emergency and essential services could place vulnerable communities at even greater risk.

“The combined effect of high fuel prices and a transport shutdown risks pushing already strained households and businesses to the brink,” she stated.

Odhiambo cautioned that continued economic pressure could quickly evolve into a wider social crisis if the Government fails to intervene decisively.

Faith Odhiambo Warns High Fuel Prices Could Trigger Wider Economic Crisis
Faith Odhiambo Warns High Fuel Prices Could Trigger Wider Economic Crisis

Calls for Urgent Government Intervention
The former LSK President urged the Government to urgently engage stakeholders in the transport and energy sectors to find sustainable solutions.

She called for transparent and accountable interventions aimed at stabilising fuel prices and protecting livelihoods.

According to Odhiambo, meaningful dialogue between authorities, transport operators and energy sector players is necessary to restore public confidence and reduce economic uncertainty.

Her remarks come at a time when matatu operators across the country have called on a strike due to the high costs oof fuel which were announced by EPRA last week.

Odhiambo maintained that failure to act swiftly would expose millions of Kenyans to worsening economic hardship and reduced access to essential services, deepening pressure on already struggling households nationwide.

 

DCI Nabs Suspect in Multi-Million Gold Scam in Kilimani

Kipkemboi Collins
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0
DCI Nabs Suspect in Multi-Million Gold Scam in Kilimani

Detectives from the Nairobi DCI have arrested a woman believed to be the mastermind behind a sophisticated gold scam that defrauded an American national of US Dollars 431,380.

The suspect was arrested at Crystal Villas in Kilimani following what investigators described as a painstaking operation to track down those behind the fraudulent scheme.

According to investigators, the scam revolved around a fake gold transaction in which the suspects allegedly promised to supply 400 kilograms of genuine gold bars to the foreign investor.

The deal was carefully staged to appear legitimate. Detectives say the suspects presented polished business proposals, held negotiations, and prepared formal documentation to convince the victim that the transaction was genuine.

Believing he was entering a lucrative investment arrangement, the American national travelled to Nairobi to finalise the agreement.

Millions Transferred Before Suspects Vanished
Once the documents were signed, the victim transferred the funds into bank accounts linked to the suspects, expecting delivery of the promised gold shipment.

However, immediately after the money was received, the alleged dealers disappeared and all communication channels went silent. Calls reportedly went unanswered and no gold was delivered, prompting the investor to realise he had fallen victim to a carefully orchestrated fraud.

The matter was subsequently reported to the DCI, triggering investigations by detectives based at the Nairobi Regional Headquarters.

DCI Nabs Suspect in Multi-Million Gold Scam in Kilimani
DCI Nabs Suspect in Multi-Million Gold Scam in Kilimani

Detectives Track Prime Suspect to Kilimani
Investigators say forensic leads and intelligence gathering efforts eventually led them to the Kilimani hideout where Mildred was arrested.

Her alleged accomplice managed to evade arrest after reportedly sensing detectives were closing in on him. Authorities said the suspect abandoned a black Mercedes-Benz E50 while escaping.

The vehicle has since been seized and towed to the Nairobi Regional Headquarters yard, where it is being held as an exhibit as investigations continue.

Police says the suspect remains in custody undergoing processing ahead of her arraignment in court.

Meanwhile, detectives have intensified the search for the second suspect as investigations into the fraudulent gold syndicate continue.

Gold scams targeting foreign investors have become increasingly common in Kenya over the years, with fraudsters often using fake documentation, rented offices, and staged meetings to lure victims into multi-million shilling schemes.

Nyoro Pushes Plan to Lower Fuel Costs

Kipkemboi Collins
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0
Nyoro Pushes Plan to Lower Fuel Costs

Kiharu MP, Ndindi Nyoro has announced plans to introduce legislative amendments aimed at significantly reducing fuel prices in Kenya, warning that the current surge in pump prices could trigger severe inflationary pressure across the economy.

In a notice issued on Friday, the Kiharu MP said he would seek changes to key fuel taxation laws in Parliament to lower the retail cost of super petrol, diesel, and kerosene.

Rising Fuel Prices Raise Inflation Fears
The proposals come at a time when fuel prices have climbed sharply, with petrol retailing at KSh 214.25 per litre and diesel at KSh 242.92 per litre.

Nyoro described the increase as “unacceptable,” arguing that it will hurt households, businesses, and the broader economy in both the short and long term.

At the centre of his proposal is a plan to reduce the Road Maintenance Levy Fund (RMLF) by KSh 7 per litre. The levy currently stands at KSh 25 per litre following an increase introduced in 2024.

Nyoro now wants the levy reduced back to KSh 18 per litre through the revocation of the Road Maintenance Levy Fund (Imposition of Levy) Order, 2024. He is also proposing amendments to the VAT Act to make petroleum products VAT exempt.

Specifically, the MP intends to delete Section 5 subsection 2A of the VAT Act, effectively reducing VAT on fuel products from the current 8% to 0%.

According to Nyoro, reducing VAT percentages alone has not been effective in lowering pump prices because the tax is calculated based on the landed cost of fuel, which has continued to rise.

“The reduction in the percentage of VAT has not done much to reduce pump prices,” he noted, adding that policymakers must stop using fuel prices for political optics while the underlying costs remain high.

Nyoro Pushes Plan to Lower Fuel Costs
Nyoro Pushes Plan to Lower Fuel Costs
Criticism of Government Fuel Pricing Policy
The MP further criticised the government’s handling of fuel pricing, arguing that announcements of price reductions after EPRA’s pricing guidance have failed to provide meaningful relief to consumers.

He said price increases in sectors such as transport often become “sticky,” meaning consumers continue paying higher fares even after fuel costs fall.

Beyond tax changes, Nyoro outlined additional measures he believes could immediately lower fuel prices. These include reducing importer and distributor margins by KSh 4 per litre and allocating an additional KSh 5 billion subsidy for diesel.

If implemented, the proposals would lower the retail price of petrol to KSh 187.38 per litre and diesel to KSh 189.16 per litre, according to the MP.

Nyoro said he will formally initiate the amendment process in Parliament in the coming days as pressure mounts over the rising cost of living in Kenya.

 

Court Upholds DPP Plea Deal in Ksh 235 Million Obado Graft Case

Kipkemboi Collins
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0
Court Upholds DPP Plea Deal in Ksh 235 Million Obado Graft Case

The Milimani Court has upheld a plea bargain agreement negotiated by the Director of Public Prosecutions (DPP) in a corruption case involving former Migori Governor Okoth Obado, his four children and 13 other accused persons.

In the ruling, the court adopted the agreement after finding it met constitutional and legal thresholds, noting that the accused had agreed to surrender assets worth Ksh 235.6 million, more than three times the Ksh 73.4 million under investigation.

EACC Objections Dismissed
The court dismissed objections raised by the Ethics and Anti-Corruption Commission (EACC), stating the agency had participated in negotiations and failed to demonstrate illegality or procedural impropriety.

Senior Principal Magistrate CN Ondieki ruled that the plea agreement passed the substantive legality test and did not amount to an abuse of process, adopting it as a judgment of the court and deeming all charges withdrawn under Section 137A of the Criminal Procedure Code.

The case, initially filed in 2021, involved 25 counts including conspiracy to commit an economic crime, conflict of interest, money laundering and unlawful acquisition of public property arising from alleged embezzlement of county funds between 2013 and 2017.

Court Upholds DPP Plea Deal in Ksh 235 Million Obado Graft Case
Court Upholds DPP Plea Deal in Ksh 235 Million Obado Graft Case
Assets Worth Ksh 235.6 Million Surrendered
As part of the settlement, the accused surrendered several high-value assets including properties in Nairobi and Migori commercial blocks residential apartments and two Toyota Land Cruiser vehicles alongside other assets collectively valued at Ksh 235.6 million.

The ruling marks a significant win for the DPP reinforcing the use of alternative dispute resolution mechanisms to enhance asset recovery expedite justice and protect public resources in complex corruption cases.

The matter was handled by Deputy Director of Public Prosecutions Norah Otieno and Principal Prosecution Counsel Jeremiah Walusala.

The decision reflects a broader shift within the Office of the Director of Public Prosecutions toward efficiency-driven prosecutions that reduce case backlog while improving asset recovery outcomes.

 

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