Governor Orengo criticises fuel price hike

Siaya Governor James Orengo has criticised the recent 25 per cent increase in fuel prices, terming it unjustified and harmful to Kenya’s economic growth.

Speaking amid growing public concern, Orengo said the increase would significantly raise production costs across sectors, slowing down the country’s economic progress.

He noted that the ripple effects of higher fuel prices would be widely felt, particularly in transport, agriculture and essential services such as water supply.

According to him, both public transport users and private car owners are already bearing the burden of the increase.

“Any rise in fuel prices affects all other sectors. It translates into higher costs of living and reduced economic activity,” he said.

The governor said Kenyans are affected not only by global oil price fluctuations but also by what he described as additional costs linked to what he termed weak oversight.

He further called on authorities to provide clear explanations regarding oil imports, warning that failure to do so would erode public trust.

On taxation, the governor dismissed proposals to adjust Value Added Tax (VAT) as insufficient to cushion citizens from rising costs.

Instead, he proposed a more aggressive reduction of VAT on fuel, suggesting it be lowered to a maximum of six per cent from previous levels, with some sectors being zero-rated to ease the burden on consumers and businesses.

He emphasised that such measures are necessary to enhance Kenya’s competitiveness and support economic growth, especially in a challenging global economic environment.

Orengo reiterated his opposition to the fuel price increase, urging the government to take urgent steps to address inefficiencies within the oil sector while implementing policies that protect ordinary Kenyans.