Nairobi — ODM leader Oburu Oginga has cautioned against the "reckless removal of taxes" as pressure mounts on the government to further cut pump prices, despite recent interventions that have offered only partial relief to consumers.
His warning comes in the wake of a series of rapid policy moves, including a temporary reduction of Value Added Tax on fuel to 8 per cent signed into law by William Ruto anchoring a downward revision of pump prices by the Energy and Petroleum Regulatory Authority (EPRA) on April 15.
Under the revised pricing effective April 16, a litre of Super Petrol in Nairobi is retailing at about Sh198, Diesel at Sh197, while Kerosene remains at Sh153--reflecting reductions of roughly Sh9.37 and Sh10.21 per litre for petrol and diesel respectively following the VAT cut.
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Even so, the relief has done little to ease public concern after steep increases earlier in the week had pushed petrol above Sh206 per litre, highlighting the continued strain on households and businesses.
Oburu who chairs the Senate Energy Committee however pushed back on calls--particularly from sections of the opposition--to scrap VAT and other fuel-related taxes entirely.
"You cannot recklessly just remove taxes. Where does the government get money? There is no money sitting somewhere in a corner," he said on Sunday.
Fiscal crisis
The ODM party leader acknowledged that the cost of fuel remains high and that Kenyans are bearing the brunt, but argued that eliminating taxes outright would create a fiscal crisis.
"Reducing taxes is not removing taxes... If you remove all taxes, how will the government run?" he posed.
Instead, he urged a more calibrated approach, calling on the government to mobilise additional resources and reallocate spending from less urgent areas to cushion consumers without destabilising public finances.
"Maybe some less priority expenditure can be put aside and the funds redirected to support the people," he said.
EPRA has attributed the volatility in fuel prices to a sharp rise in global oil costs, with the landed price of imported petroleum products surging significantly in recent months.
As a net importer, Kenya remains highly exposed to international market fluctuations and exchange rate pressures.
The government has also deployed Sh4.2 billion from the Petroleum Development Levy alongside the VAT cut to stabilise prices, but Oburu maintained that the current measures are still not proportionate to the scale of recent increases.
"The decrease is not proportionate to the increase," he said.
He revealed that consultations are ongoing with the executive to explore further interventions, including engagements at the highest levels of government.
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"We are in consultation... to find ways of cushioning our people from these very high fuel prices," he added.
On demands for the resignation of senior officials in the energy sector, Oburu urged restraint, insisting accountability must be anchored in due process rather than political pressure.
"We are not the investigative authority... If someone is found culpable, they should step aside. But not before," he said.
As chair of the Senate Energy Committee, Oburu declined to comment on ongoing parliamentary investigations into fuel importation and pricing, citing procedural limitations.
