Travel is not normal in Kenya today.
Public transport vehicles in Kenya are on strike today. This follows a call for all stakeholders to down their tools in protest against exorbitant fuel prices.
Price Comparisons
The price of diesel today is almost sh.243, while that of petrol is around sh.214.
The prices of these commodities in Uganda are roughly equivalent to Ksh. 174 and Ksh. 180, respectively.
In February, before the US/Israeli – Iran war, the prices of diesel and petrol in Kenya were roughly sh.167 and sh.178 respectively.
In Uganda, the February prices were around Ksh. 171 and Ksh. 182, respectively.
This means the fuel prices of diesel and petrol before the Iran war have increased in Kenya by sh.76 (243 – 167) and sh.36 (214 – 178) respectively.
In Uganda, the increases for diesel and petrol in the same period are equivalent to Ksh. 3 and Ksh. 2, respectively.
Kenya has a Vibrant Port.
The government of Kenya has attributed the high cost of fuel to the conflict in Iran. This is because it has become difficult to transport oil products through the Strait of Hormuz.
The conflict in the Gulf region has disrupted sea transport and thus triggered an oil shortage. This has, in turn, increased the global price of oil. Escalating oil prices have the potential to cripple businesses worldwide.
However, many countries have implemented appropriate economic measures to mitigate inflation and ensure their economies remain stable. Normally, in situations like these, governments put infrastructural projects on hold.
That leaves the government with less need for tax income. Lower taxes mean the average citizen can afford basic goods and services.
Another measure governments normally take includes the elimination of excise duty, albeit temporarily. This ensures the cost of production does not escalate in a manner to cripple manufacturing or the provision of services.
Governments also reduce or eliminate Value Added Tax (VAT) on certain goods, especially food products, raw materials, and basic services.
Why Fuel Prices in Kenya are Much Higher than in Uganda
One would expect fuel prices to be lower in Kenya than in Uganda, partly because Uganda is landlocked. Many of Uganda’s petroleum products come through the Kenyan ports. Hence, the cost of transporting them is higher in Uganda than in Kenya.
Nevertheless, fuel pricing in Kenya does not seem to follow that logic. Ordinary masses have therefore gone to the streets to protest the exorbitant fuel prices. Kenya’s main mode of transport, “matatus”, is not on the road today. Taxis and tuk-tuks, too, have withdrawn their services.
Many people have been unable to reach their workplaces. Hence, businesses have remained largely closed since early morning. In many towns and on major roads, such as the Ruiru By-pass, people are burning tyres to ensure even private vehicles cannot pass.
Today, in Kenya, it is a wait-and-see scenario. Threats of a protest and defiance to paralyze transportation began last week. Yet no government leader has said anything to give the public hope.
Apparently, the government has no intention of removing the numerous fuel levies that make up a large share of the fuel price. These include excise duty, VAT, road maintenance levy, among others.
Just like electricity in Kenya, government levies/charges/taxes often account for over 40% of the consumer price.
Some of these levies may be a result of pressure from lending institutions.
Unfortunately, when lending institutions encounter a government desperate to borrow, they often impose stringent conditions. Some of those conditions, while favourable to foreign investors, are punitive to the ordinary Kenyan.