President William Ruto on Tuesday found himself in unfamiliar territory after his own MPs confronted him over the skyrocketing cost of living.
Five months after passing the Finance Bill 2023, the Kenya Kwanza lawmakers told Ruto the steep cost of living is dealing a blow to his popularity.
The MPs attending a Parliamentary Group meeting at State House demanded action from the President to cushion Kenyans and reduce the pain to their pocketbooks.
Multiple sources who attended the morning meeting told the Star a number of lawmakers cautioned that the cost of living is making them unpopular with voters and something should be done urgently.
The Kenya shilling has been in free fall against the dollar and since January has depreciated by more than 17.7 per cent against the greenback.
At the same time, the cost of fuel has hit a record high, triggering a spike in prices of basic commodities and many other items and services.
Nominated MP Veronica Mania reportedly called for a review of some the taxes loaded on the petroleum products that are causing not only pain at the pump but also at the grocery and making it harder to raise school fees.
“Yes, the issue of cost of living was very hot. Members wanted a mid-term solution to bring the cost of living down,” a source told the Star in confidence.
“Some called for reduction of taxes on fuel while others suggested a relook at the freeze in subsidies,” he said
Another source corroborated this: “We even pleaded with him to allow a review of taxes so the situation can be become bearable to our people.”
Speakers at the State House meeting said the ground is becoming hostile with wananchi getting impatient for change during tough economic times.
This is the first time the Kenya Kwanza-aligned lawmakers have taken the Head of State head-on concerning the cost of living.
Some MPs confessed that it is becoming difficult to hold public meetings in their constituencies owing to the hard economic situation that is slowly turning people against them.
They urged the President to consider taking short-term measures to assuage the ‘public anger' against the government.
But Ruto fired back, reportedly telling them that “you cannot be popular all the time, there is time to be popular.”
The unshaken Head of State stuck to his guns, reportedly explaining his administration has not added any tax on fuel and the recent surge in fuel prices is not a result of the recently introduced taxes.
In June, Ruto introduced many new taxes, and increased VAT on fuel from eight per cent to 16 per cent.
However, Ruto, according to sources, blamed the high pump prices on external factors, including the soaring price of the dollar.
“The President was categorical that we cannot continue subsidising consumption, especially on fuel. In fact, he said we cannot be popular all the time and this is not the right time to be popular and that when the right time comes, he will go and engage the people,” another source said.
“He also added that these monthly increments are not a result of taxes, the only tax put on fuel was VAT, which is part of the Finance Act and no other tax has been added.”
This comes just hours after Energy Cabinet Secretary Davis Chirchir announced Super Petrol is likely to rise to Sh300 in the coming fuel price review.
Petrol prices are currently retailing at Sh217 in Nairobi.
"I read an article recently in the Financial Times that prices are likely to go up to $150 per barrel," Chirchir said on Monday when he appeared before the National Dialogue Committee.
"That would literally mean our products going to the highs of Sh300 per litre, but we hope it does not get there."
Cost of living is among the contentious issues being deliberated by Ruto and Azimio leader Raila Odinga’s teams at the dialogue committee.
The Opposition chief has already warned that his side in the talks will not sign any report that does not address lowering the cost of living.
“The Azimio coalition will not get into any agreement (with the Kenya Kwanza administration) if the question of the cost of living is not addressed. The cost of living must come down first,” Raila said on Monday in Mombasa.
The team co-chaired by National Assembly Majority Leader Kimani Ichung’wah and former Vice President Kalonzo Musyoka is expected to hand over its report on November 22.
The State House meeting also deliberated on the debt burden and what the government is doing to alleviate the suffering of Kenyans.
The President reportedly told his troops he has formed a committee on pending bills that will scrutinise all arrears in the two levels of governments.
“The committee on pending bills, he said, is being commissioned today (Tuesday). It is going to deal with pending bills both in the county and national governments,” a first-term MP told the Star in confidence.
The MPs were also briefed on the Haiti mission where Kenya is seconding 1,000 police officers to help restore peace in the Caribbean country wracked by gang violence, hurricane damage and poverty.
Ruto is said to have told the MPs that Kenya was chosen to lead the peace mission because of the skin colour of local officers that matches
“He (Ruto) explained that because the last time there was chaos there, the finding is that locals were so much against the mission because it was led by white people. You know Haiti is a 100 per cent black nation like Kenya. Kenya was chosen and requested to lead the delegation there because of the colour,” a female MP from Central told the Star.
Another consideration that gave Kenya an edge over the others is the country’s experience in past missions like the African Union Mission to Somalia (AMISOM).
On the issue of Meru Governor Kawira Mwangaza impeachment being considered by the Senate, multiple sources said it was not substantively addressed but there were murmurs about the issue.
“It was not in the discussion, but of course there were some shouting against her and some were for her,” our source intimated.
The meeting is said to have come to an end and another one slated for next week at a date to be confirmed.