Login

Lost your password?

Sign Up

Register

Login

Login

Lost your password?

Register

Sunday, August 14, 2022
  • Home
  • Banking
  • Industry & Trade
  • Investing
  • Money Deals
  • Regional Markets
  • Tech & Biz
  • Countries
  • Opinion

Africa's
Investment
Gateway

The Exchange
  • Login
  • Register
Subscribe
This Month's Edition
Previous Editions
  • Home
  • Banking
  • Industry & Trade
  • Investing
  • Money Deals
  • Regional Markets
  • Tech & Biz
  • Countries
  • Opinion
No Result
View All Result
The Exchange
  • Home
  • Banking
  • Industry & Trade
  • Investing
  • Money Deals
  • Regional Markets
  • Tech & Biz
  • Countries
  • Opinion
No Result
View All Result
The Exchange
LOGIN
www.theexchange.africa

President Uhuru Kenyatta. Photo: State House Kenya.

Kenya gives oil marketers $144 million to retain fuel prices amid high cost of living

"The president has authorised an additional fuel subsidy of KSh 16.675 billion ($144 million) to cushion Kenyans from a further increase in fuel prices"

by Wanjiku Njugunah
July 14, 2022
in Business, Industry and Trade, Investing
0
Share on FacebookShare on LinkedIn
  • The Kenyan government has announced a fuel relief targeting consumers who have been paying the highest prices ever recorded in the East African country
  • The government’s spokesperson Kanze Dena informed the public that the government had left the prices of the commodities unchanged, amid a steep rise in the cost of living
  • Kenyans will continue to pay KSh 159.12, KSh 140 and KSh 127.94 for a litre of petrol, diesel and kerosene, respectively

The government of Kenya has announced a fuel relief targeting consumers who have been paying the highest prices ever recorded in the East African country.

On June 14, 2022, the government’s spokesperson Kanze Dena informed the public that the government had left prices of the commodities unchanged, amid a steep rise in the cost of living.

As such, Kenyans will continue to pay KSh 159.12, KSh 140 and KSh 127.94 for a litre of petrol, diesel and kerosene, respectively.

The decision to leave the prices unchanged came after the government tapped KSh 16.7 billion from the fuel stabilisation kitty to compensate oil marketers.

“His Excellency, the President understands that high fuel prices pose a significant challenge for every Kenyan household and collectively on the economy and our way of life,” Dena said on behalf of President Uhuru Kenyatta.

“It is notified that His Excellency the President has today authorised an additional fuel subsidy of Ksh. 16.675 Billion, to cushion Kenyans from a further increase in fuel prices. With today’s presidential action, diesel will continue to retail at Ksh. 140.00, petrol at Ksh.159.12 and Kerosine at Ksh.127.94.”

Further, State House Kenya noted that without such state interventions, the pump prices would have been KSh 193.64 for diesel, KSh 209.95 for petrol and KSh 181.13 for Kerosene.

The government’s decision came when Kenya’s inflation has hit a record high.

“As a caring Government, we will continue to roll out similar actions so as to provide further direct relief to all Kenyan families and establish the necessary safeguards for protecting Kenyan consumers from further increases in the cost of living.”

The Energy and Petroleum Regulatory Authority (Epra) has since March gradually increased pump prices amid skyrocketing prices of crude in the global market.

The Exchange Africa recently reported that economic experts had projected that Kenya’s cost of living will remain high following the recent hike in fuel prices in the East African nation.

In their latest report, experts from Cytonn Investments said that fuel is a major contributor to Kenya’s headline inflation and fuel prices are a major input cost in most of Kenya’s sectors. The sectors include manufacturing, transport, and energy.

Experts project Kenya’s economy to worsen as fuel prices increase hits new record

Further, the experts noted that the business environment is expected to deteriorate even further as consumers are likely to cut spending.

Cytonn’s report further noted that global fuel prices have recorded a 45.2 per cent increase since the beginning of the year to USD 123.7 per barrel as of 16th May 2022, from USD 85.2 per barrel recorded on 3rd January 2022, driven by persistent supply chain constraints worsened by the geopolitical pressures occasioned by the Russian invasion of Ukraine.

These are the highest prices witnessed globally, since 15th March 2012, when prices reached USD 124.3 per barrel. Kenyans have been largely cushioned from the high prices by the fuel subsidy program under the National Treasury.

www.theexchange.africa
Petrol station. Photo: Unsplash.

“However, we have maintained that the programme is unsustainable and will be depleted should the average landed costs of fuel continue to rise,” the experts noted.

Separately, The Exchange Africa had earlier reported that Kenya’s average inflation rate increased to 6.3 per cent in the first half of 2022, compared to 5.9 per cent in a similar period in 2021.

Cytonn Investments attributed the rise to a 13.8 per cent and 7.1 per cent year-on-year increase in food and oil prices, respectively.

For instance, inflation for June 2022 came in at 7.9 per cent, the highest since August 2017 and an increase from the 7.1  per cent recorded in May. The report said the rise was on account of a 1.2 per cent, 1.5 per cent and 0.9 per cent increase in the food and non-alcoholic beverages index, household and equipment and transport index.

The June 2022 year-on-year inflation rate is the highest since August 2017.

“For the first time in five years, Kenya’s inflation has surpassed the government’s target range of 2.5 per cent – 7.5 per cent, despite efforts by the Monetary Policy Committee (MPC) to contain the rise by raising the Central Bank Rate (CBR) to 7.5 per cent. The increase is mainly attributable to the rise in food and fuel prices amid supply chain constraints coupled with a depreciating currency.”

Kenya: Food, oil prices force average inflation to rise to 6.3% in first half of 2022

Tags: Featuredfuel crisis in Kenyafuel pirces in Kenya in 2022Kenya

STATE OF ECONOMY - GET THE REPORT

ASSESSING EAST AFRICA

Loading...

Wanjiku Njugunah

Wanjiku Njuguna is a Kenyan-based business reporter with experience of more than eight years.

Related Posts

Zimbabwe’s central bank unveiled the first images of gold coins it hopes will help solve its inflation problem. www.theexchange.africa
Investing

Reserve bank of Zimbabwe to release smaller gold coins in November

August 14, 2022
The Kenyan stock market resumed Wednesday following the General Election break with a $268 million gain. www.theexchange.africa
Business

Kenya’s stock market is up $268 million amid a close presidential contest

August 13, 2022
Kakuzi, a listed Kenyan agri-business, has partnered with marketing firm Driscoll's to launch a blueberry export plan
Business

Kenya: Kakuzi signs new blueberry export plan with Driscoll’s

August 13, 2022
Next Post
Zambia intends to scrap almost $2 billion in projects in order to reduce debt www.theexchange.africa

Zambia plans on scrapping US$2 billion projects to reduce debt

Gold coins were introduced as a store of value in Zimbabwe (Photo/ Zimbabwe Situation)

Zimbabwe's gold coins available from July 25

Drones increase inspection efficiency by 80% for utilities and power companies. Drone Pilot operating Drone at powerlines (Photo/ FEDS)

Zimbabwe Electricity Authority embraces Artificial Intelligence in service delivery

Please login to join discussion




This months edition

Features

The leaders of the BRICS nations meet at the group’s summit in Osaka in June 2019. Concerns are India might pull out of the group over tensions with China. (Photo/ Reuters)
Countries

What does Russia’s invasion of Ukraine mean for Southern Africa?

by Albert Nangara
August 3, 2022
0

When the United Nations General Assembly voted overwhelmingly on March 2 to condemn Russia’s invasion of Ukraine, African countries accounted...

Read more
Logistics and transport startups will play a major role in enabling Africa’s largest free-trade area (Photo/ Quartz Africa)
Industry and Trade

Trends shaping the future of logistics in African markets

by Albert Nangara
August 3, 2022
0

Digitization of logistics and compliance with sustainability policies will shape the future of logistics in African markets. Digitalization involves the...

Read more
Biometric systems are expected to lead the market for airport security systems in growth over the next five years, as the market increases at an 8 per cent CAGR through 2024 (Photo/ Biometric Updates).
Tech & Business

Machine learning, Artificial Intelligence changing Africa’s Airports

by Albert Nangara
August 2, 2022
0

According to Frontiers, AI has been recognized to have a wide potential to reduce human workload or increase human capabilities...

Read more
www.theexchange.africa/
Investing

ESG global mining and the social license

by Laurence Sithole
August 2, 2022
0

In terms of achieving net zero carbon emissions, the largest mining companies in the world have several options – each...

Read more
Some of the group members learning the components of the new briquette making machine. The machine can produce 500 briquettes per day. www.theexchange.africa
Investing

Reusable, organic charcoal: Answer to Africa’s cooking fuel challenges

by Njenga Hakeenah
August 2, 2022
0

United for Green is working to ensure that Africans do not get to these extremes. By empowering women, the plan...

Read more

News

Banking
Industry & Trade
Investing
Money Deals
Regional Markets
Tech & Biz
Opinion

Countries

Kenya
Tanzania
Uganda
Burundi
Rwanda
Southern Africa
Ethiopia

More

My Account
Contact us
Advertise
About us
Help Center

Subscribers Center

E-paper
Premium Stories
Education Rates
Corporate Subscriptions
Weekely Newsletter

  • My account
  • About us
  • Advertise
  • Contact
  • Privacy Policy
  • Refund Policy – The Exchange
  • Sitemap

No Result
View All Result
  • Home
  • Banking
  • Industry & Trade
  • Investing
  • Money Deals
  • Regional Markets
  • Tech & Biz
  • Countries
  • Opinion
  • Login
  • Sign Up
  • Cart

© 2021 The Exchange - Powered by MediapixManaged by Supported by Digihandler,

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In