Kiharu Member of Parliament Ndindi Nyoro has proposed slashing Ksh100 billion from foreign travel budgets allocated to the Executive, Legislature and Judiciary, with the funds redirected to the Fuel Subsidy Fund in a bid to lower fuel prices.
During his presentation to the Departmental Committee on Budget regarding fuel price mitigation, MP Nyoro pointed to government expenditure as a key factor driving up the cost of petroleum imports in the country.
The legislator argued that reducing allocations for foreign travel across the three arms of government would create room for additional fuel subsidies. He also questioned why some institutions, including State House, are receiving a 25 per cent increase in budget allocations.
"Cut travel budgets for the entire government. Cut operation and maintenance spending. This will create resources that can be redirected to fuel subsidies," Nyoro stated.
The former Budget Committee chair is also advocating for the removal of the 8 per cent Value Added Tax (VAT) on fuel and a reduction of at least Ksh.7 from the Road Maintenance Levy Fund (RMLF), saying the measures would help ease the burden on consumers.
However, his proposal drew criticism from committee members.
"When you say we reduce the Road Maintenance Levy Fund by Ksh.7, yet it was during your time as chair when you stated road construction had stalled because of a lack of securitizing the road levy," said Walter Nyakundi.
Responding to the concerns, Nyoro defended his proposal.
"The Ksh.7 deduction will mean that the government relieves Kenyans of further taxation by relying on the Fuel Subsidy Fund. When I was chair, I always advocated for fuel price reduction through other means," he stated.
Committee Chair Samuel Atandi questioned the feasibility of reducing revenue streams at a time when the government is grappling with significant expenditure obligations.
"With the huge budget expenditure burden, it is impossible to cut off revenue," Atandi said.
Nyoro also called for the complete scrapping of the government-to-government (G-to-G) oil importation arrangement, arguing that it has failed to cushion consumers from rising fuel prices.
"G-to-G is more expensive for us because of the oil source issue and companies being used as proxies," he said.
The session later shifted focus to electricity costs, with lawmakers questioning why Nyoro had not proposed similar interventions in the power sector.
"Why aren't you proposing a reduction of electricity prices, or is it because you're a beneficiary?" Atandi asked.
Nyoro dismissed the accusation.
"It appears the questions are premeditated. Anyway, better me, who is investing locally," he responded.
Khwisero lawmaker Christopher Aseka also pressed the issue.
"You don't want to touch electricity because you know you are a shareholder," Aseka said.
Nyoro maintained that he had already addressed the matter.
"Aseka, you keep asking the same question about electricity prices, yet I've answered it. This is because you have premeditated questions. The problem with high electricity prices is because of private companies supplying power," he said.
The Departmental Committee on Budget is currently reviewing proposals aimed at addressing rising fuel prices and is expected to table a detailed report before the Committee of the Whole House.
