Treasury CS Mbadi rejects claims of secret fuel levy amid record price surge

Government Defends Fuel Price Hike Amid Global Market Pressures

Nairobi, Kenya – July 17, 2025:

Treasury Cabinet Secretary John Mbadi has strongly defended the recent fuel price rise, attributing it to global oil market fluctuations and geopolitical instability, particularly the Israel–Iran tension. He dismissed claims by MP Ndindi Nyoro that the government quietly imposed a KSh 7 per-litre levy last year, calling them “misinformed”  .

⛽ What Changed at the Pump

• On July 15, the Energy and Petroleum Regulatory Authority (EPRA) approved a monthly fuel price adjustment:

  • Super petrol rose by KSh 8.99 to KSh 186.31/litre

  • Diesel increased by KSh 8.67 to KSh 171.58/litre 

  • Kerosene also saw a significant uplift 

The regulator linked the increase to a 6–7 percent rise in landed costs, fuelled by higher global prices and shipping disruptions  .

💰 Shock or Strategy? The KSh 7 Levy Debate

• Nyoro claimed the government masked a new KSh 7 levy by securitising it last year, preventing Kenyans from benefiting from global price drops  .

• Mbadi responded that the original KSh 18 levy (for road maintenance) remains untouched, adding that KSh 7 was securitised to raise upfront cash—about KSh 60 billion so far—to pay off pending KSh 175 billion in contractor debts  .

• He assured Kenyans this was a legal, transparent process, overseen by the Attorney General and National Treasury, and not new taxation ().

• Both CS Mbadi and Roads CS Davis Chirchir emphasised that this securitisation is a financial tool, not a tax, and does not create new debt  .

🔍 Ministerial Assurances & Watchpoint

• CS Mbadi said the government may securitise an additional KSh 5 subject to Parliament’s approval, and that this mechanism keeps contractors working while avoiding short-term repairs  .

• CS Chirchir added that no new borrowing is taking place—the fuel levy rights were simply sold to raise funds up front  .

• EPRA reaffirmed that fuel pumps now reflect market-driven prices, not domestic taxes  .

🧾 What This Means for You

• Expect higher transport and commodity costs for the next month, as fuel adjustments ripple across sectors  .

• The securitisation model may help complete stalled road projects but raises concerns about mortgaging future levy income.

• Kenyans should press for full transparency, including parliamentary oversight, to ensure pits and paved roads genuinely match levy proceeds.