UDA presidential candidate William Ruto found himself in a tight spot Tuesday night during the presidential debate when enumerating how he proposes to reduce the cost of living.
A calm and collected Ruto said he had an explicit plan on how he would reduce the cost of living should he win the August 9 general election.
Asked what the plan entails, the Deputy President said reduction of taxes on imported fuel was part of his strategy to ease the burden off Kenyan households.
He said there are about 15 different taxes levied on fuel which drive up the cost of the product.
"We need to interrogate these 15 taxes which ones can we put aside so that like other taxes we can reduce the taxation," Ruto said.
"Fifty per cent, almost, of the cost of fuel in Kenya is taxes. I think it's time as a country we looked at how else we can raise revenue," he added.
But moderator Yvonee Okwara challenged him to name the specific taxes he thinks should be removed, but the DP said he had no specifics.
"I do not have the specifics, but those 15 we need to interrogate."
Ruto, however, said VAT tax, which was the latest to be levied on fuel, is among the taxes he would abolish to reduce the cost of living.
"I think it was very controversial," he said.
Kenya imposed 16 per cent Value Added Tax on all petroleum products in 2015 on petrol, diesel and kerosene.
This was as a cautionary pre-condition by the IMF prior to advancing loans to Kenya.
This had far reaching effects on Kenyans as it resulted in the high cost of living due to high production costs for basic goods.
But Ruto said to rectify this, Kenya needs to look for alternative ways of raising revenue to repay the loan, or even better, re-negotiate with the International Monetary Fund over the loan repayment condition.
"I think any reasonable government looking at the situation where we are, looking at the cost of living and how many Kenyans are every day sinking below the poverty line, I think it takes a courageous government to sit down with our development partners and they are fairly reasonable people, and have a discussion," Ruto said.
"We need to renegotiate on some of the items that are outstanding," he added.
Fuel prices in the month of July remained unchanged after government introduced a Sh16.675 billion subsidy.
Petrol is now retailing at Sh159.12, Kerosine at Sh127.9 4 and diesel at Sh140.00 in Nairobi.
Without the subsidy, prices would have increased to Sh193.64 for diesel, sh209.95 for petrol and Sh 181.13 for Kerosene.
