Ndindi Nyoro Claims Government Took Hidden Loan Using Fuel Levy as Security
Kiharu MP Ndindi Nyoro, on Tuesday, July 15, strongly criticised the government over the recent sharp increase in fuel prices, accusing it of deceiving Kenyans with misleading explanations.
Nyoro dismissed the official reason given by the Ministry of Energy, which blamed the increase on changes in international fuel prices. Instead, he accused the government of secretly borrowing money and using the fuel levy as collateral without informing the public.
Just hours after the Energy and Petroleum Regulatory Authority (EPRA) released the new fuel prices—set to apply until August 14—the Ministry of Energy attributed the hike to global market trends. However, Nyoro challenged this explanation, insisting that international oil prices had already peaked earlier in the year and were now declining.
“We witnessed a major jump in fuel prices yesterday, but the reasons given don’t match the facts. Blaming global oil prices doesn’t add up. The highest oil prices we’ve seen over the past year were on June 17, 2024,” Nyoro explained.
He further pointed out that a significant portion of the fuel cost paid by Kenyans goes towards taxes and various levies. Nyoro argued that these charges are putting serious pressure on the economy and the cost of living for ordinary citizens.
He went on to make a serious claim—that the government secretly added an extra Ksh7 per litre levy on fuel at a time when international oil prices were actually going down.
According to Nyoro, this wasn’t just an effort to collect more revenue. He alleged that the government used this additional levy as collateral to borrow a massive Ksh175 billion loan.
“This money does not appear anywhere in the government’s official financial records as debt. That makes it illegal—any borrowing that’s not properly documented and approved cannot be considered lawful,” he added.
Nyoro, who was removed from his position as chair of the National Assembly’s Budget and Appropriations Committee in March, also raised major concerns about transparency.
He warned that using gazette notices to impose levies that support long-term borrowing bypasses proper checks and balances. He urged banks to be cautious about issuing loans based on such arrangements.
“If we allow public levies like the fuel tax to be used as security for loans without Parliament’s approval, what will stop future governments from using VAT, PAYE, or NHIF deductions the same way? What will remain of our country’s financial independence?” Nyoro questioned.
In the latest fuel price adjustment made on Monday, EPRA announced that Super Petrol would go up by Ksh8.99 per litre, Diesel by Ksh8.67, and Kerosene by Ksh9.65.
With these changes, fuel in Nairobi will now cost Ksh186.31 per litre for Super Petrol, Ksh171.58 for Diesel, and Ksh156.58 for Kerosene.
According to EPRA’s Energy and Statistics Report for the first half of the 2024/2025 financial year, monthly fuel prices are determined by several key components.
One of the major factors is the landed cost, which refers to all the expenses involved in importing petroleum products into Kenya. These include charges for shipping, insurance, and port handling.
Another important component is distribution cost, which covers the transportation of fuel from import terminals to fuel stations across the country. EPRA uses all these cost factors to come up with the final pump price each month.
Join Gen Z & Millennials Revolution New WhatsApp Channel To Stay Updated On time
https://whatsapp.com/channel/0029VaWT5gSGufImU8R0DO30
