This archive report was first published on 28 September 2021.
On September 28, 2021, the State paid oil marketers Sh8.64 billion in compensation for keeping fuel prices unchanged from March to August to diffuse public outrage.
Energy and Petroleum Regulatory Authority (Epra) Director General Daniel Kiptoo made the revelations during a National Assembly committee on Finance and National Planning meeting.
The move to keep fuel prices unchanged was meant to contain public anger over the rising cost of living during the Coronavirus pandemic.
According to Mr. Kiptoo, the State paid marketers Sh8,664,683,458 from March to August when the prices were unchanged.
Kenya discontinued the fuel subsidy starting with the monthly review to October 14, pushing pump prices to record highs and piling more pressure on motorists, businesses, and households.
Removal of the subsidy led to an increase in fuel prices, with petrol rising by Sh7.58 a litre in Nairobi to Sh134.72, diesel jumping Sh7.94 to Sh115.6 a litre, and kerosene increasing by Sh11.36 to Sh112.96 per litre.
