Tax relief, not first-aid, will cushion Kenyans

Kenyans are once again paying the price for a global crisis they did not create. The sharp rise in fuel prices following tensions involving the United States, Israel and Iran has exposed the vulnerability of oil-importing economies such as Kenya’s.]

Thursday’s increase of Sh16 on petrol and an astonishing Sh46 on diesel is not merely a transport issue; it is a direct attack on household budgets, food prices and business survival.

For years, the government has relied on fuel subsidies as the preferred response to rising oil costs. Subsidies merely act as a painkiller, but are unsustainable and inadequate. Treasury officials must now embrace broader and more practical measures that put money directly into the pockets of citizens.

Reducing PAYE, even temporarily, would immediately increase disposable income for salaried workers struggling with inflation. Suspending the housing levy would further ease pressure on workers and employers while stimulating spending across the economy. More consumer spending means stronger businesses, preserved jobs and higher tax revenues in the long term.

Extraordinary economic shocks demand bold thinking. Kenyans do not need short-term political gestures. They need durable policies that soften the burden of a costly global oil crisis. Government must also curb wasteful expenditure and prioritise efficient public transport to reduce dependence on expensive imported fuel supplies.