Parliament agrees to listen to Nyoro's fuel cost-cutting proposals

Kiharu MP Ndindi Nyoro addressing the media in his office on April 15, 2026. /SCREENGRAB

The National Assembly has agreed to consider proposals by Kiharu MP Ndindi Nyoro aimed at reducing fuel prices, offering him a formal platform to present measures he says could lower diesel costs by at least Sh54 per litre.

The move comes as the government continues negotiations with transport sector stakeholders following the nationwide matatu strike sparked by soaring fuel prices.

In a communication from Parliament’s Parliamentary Budget Office, the House confirmed receipt of Nyoro’s letter dated May 15, outlining proposed legislative amendments intended to ease the cost of fuel and cushion Kenyans from the rising cost of living.

“The proposals shall be processed in accordance with the provisions of Article 114 of the Constitution and the National Assembly Standing Orders,” the letter signed by Director Parliamentary Budget Office Martin Masinde stated.

Parliament said the proposals had already been forwarded to the relevant House committees for consideration.

The Budget and Appropriations Committee, together with the Departmental Committee on Finance and National Planning are expected to engage Nyoro on the financial implications of the proposed changes on the current and upcoming national budgets, as well as existing obligations tied to the Road Maintenance Levy Fund.

“As per the established practice, the Budget and Appropriations Committee and the Departmental Committee on Finance and National Planning shall require you to make representations on the implications of your proposals,” the communication stated.

In his submission to Parliament, Nyoro proposed two key interventions aimed at lowering retail fuel prices for super petrol, diesel and kerosene.

The first proposal seeks to reduce the Road Maintenance Levy Fund charge by Sh7 per litre through revocation of the 2024 levy order that increased the charge from Sh18 to Sh25 per litre.

The second proposal seeks to amend the VAT Act by removing petroleum products from taxable supplies and classifying them as VAT-exempt products, effectively reducing VAT on fuel from the current eight per cent to zero.

“These amendments are short-term measures aimed at reducing the inflationary and sticky economic effects arising from the current high fuel prices,” Nyoro stated in his letter.

He has also proposed a reduction of the profit margins of importers and distributors, which are currently capped at Sh17.39 per litre for super petrol and Sh17.31 for diesel, and an additional subsidy of Sh5 billion exclusively for petrol fuel.

"The measures will reduce price of diesel by approximately Sh54 per litre," he said.

The proposals come against the backdrop of mounting public anger over fuel costs following the May 14 review by the Energy and Petroleum Regulatory Authority (EPRA).

The review increased the price of Super Petrol by Sh16.65 per litre and Diesel by Sh46.29, pushing pump prices in Nairobi to Sh214.25 and Sh242.92 respectively.

The increase triggered a nationwide strike organised by the Transport Sector Alliance, bringing movement in major towns and cities nearly to a standstill as matatus, online taxi operators, cargo transporters and motorcycle riders withdrew services.

On Monday and Tuesday, thousands of commuters walked long distances to work while others paid inflated fares on the few routes where vehicles remained operational.

The transport paralysis also disrupted schools, businesses and supply chains, piling pressure on the government to intervene.

In response, the government convened talks with transport stakeholders at Transcom House led by Energy CS Opiyo Wandayi and Transport CS Davis Chirchir.

Following the negotiations, the government announced a Sh10.06 reduction in diesel prices and increased kerosene prices to narrow the gap between the two products and reduce the risk of fuel adulteration.

However, transport operators initially rejected the concession, insisting it fell below their demand for a Sh30 to Sh35 reduction.

The standoff culminated in a dramatic public disagreement between Wandayi and Tour Guide Association chairperson Kennedy Kaunda during a live press briefing on Monday evening.

After further consultations on Tuesday spearheaded by Wandayi and Interior Cabinet Secretary Kipchumba Murkomen, operators agreed to suspend the strike for seven days to allow room for dialogue with the government.

They, however, warned that should they fail to reach a consensus, they would revive the strike.

The government has maintained that the fuel crisis is largely driven by global instability linked to the conflict involving the US, Israel and Iran, which has pushed up international fuel, freight and insurance costs.

Treasury CS John Mbadi and Deputy President Kithure Kindiki have also defended the retention of some fuel levies, arguing that removing them entirely would affect funding for roads and other essential public services.

Even so, pressure continues mounting on the government to find sustainable measures to lower fuel costs as Kenyans continue grappling with rising transport expenses, expensive food and shrinking household budgets.

Ndindi expressed confidence that it may appear before the relevant committees, hopefully next week.

"The proposals are independent of whatever discussions other sectors of the economy will be having. Whereas rising prices directly affect the transport sector, they also affect all Kenyans directly and indirectly," he said.