Kenya: Govt Spends Sh945mn On Fuel Subsidies, Sh1.8bn On Drought Relief

Nairobi — The government has spent Sh945 million from the Petroleum Development Levy and disbursed Sh1.8 billion in drought relief to cushion households from high fuel costs and worsening food insecurity in arid counties.

Speaking during a weekly briefing, Government Spokesperson Isaac Mwaura said the funds are part of measures to ease the cost of living, alongside the continued application of the 8 percent Value Added Tax (VAT) on petroleum products to help stabilize pump prices.

On drought response, Mwaura said the Sh1.8 billion was released between February and June 2026 to support vulnerable communities in eight counties affected by prolonged dry conditions.

"The disbursement of KSh 1.8 billion across eight arid counties, including Turkana with KSh 537.9 million, alongside Wajir, Mandera, Marsabit, Garissa, Isiolo, Samburu, and Tana River directly targets food security and drought resilience where it is needed most," Mwaura said.

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Mwaura also addressed concerns over the proposed Sacco Societies (Amendment) Bill, 2025, dismissing claims that it seeks to create a single "super SACCO."

"Claims that the bill is creating a 'super SACCO' are entirely untrue. The bill only proposes a secondary SACCO society to support smaller SACCOs by reducing operational costs and enhancing financial stability. It is not being rushed," he said.

He further said funds under the Social Health Authority (SHA) are being managed prudently and commended the Kenya Revenue Authority (KRA) for ongoing efforts to improve revenue collection.

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