MP Ndindi Nyoro sounds alarm over rising fuel prices, alleged off-book borrowing - Citizen Digital

Kiharu Member of Parliament Ndindi Nyoro. Photo I File

Kiharu Member of Parliament Ndindi Nyoro, has voiced sharp criticism of the recent spike in fuel prices and raised red flags over what he termed as opaque and potentially unconstitutional government borrowing practices.

Nyoro rejected the Ministry of Energy's explanation in a Tuesday statement, which attributed the fuel price increase to rising global oil prices, claiming that the claim is unsupported by international market data.

“Global oil prices peaked last year, not this year,” Nyoro said, accusing the government of using misleading narratives to justify high pump prices.

According to the MP, the true cause of the fuel cost crisis is domestic, excessive taxation and the securitisation of fuel levies.

“Out of the total cost per litre, more than KSh 80 for petrol and KSh 76 for other fuels go directly into taxes and levies,” Nyoro revealed. 

He argued that in a country with domestic oil production, tax policy is the only effective tool for protecting consumers from volatile fuel prices—yet, he claimed, it is being abused.

Nyoro also revealed that in 2023, the government quietly implemented a Ksh.7 per-litre levy at a time when global oil prices were falling, effectively denying Kenyans the relief that would have come with lower international prices.

Even more concerning, Nyoro claims, is the government's decision to securitise the levy and borrow Ksh.175 billion against it, without parliamentary approval or public disclosure.

“This borrowing is not captured in official debt records, and Parliament was never consulted. That raises grave concerns about transparency, legality, and long-term fiscal sustainability,” he warned.

Nyoro questioned the identity of the lenders, the interest rates involved, and the broader implications for Kenya’s economic future. “We are essentially spending money today that belongs to future budgets. This undermines financial planning for coming administrations and risks mortgaging the country’s revenue streams.”

“If public levies can be used as collateral for debt without oversight, what stops future governments from pledging VAT, PAYE, or even NHIF contributions? This sets a dangerous precedent that threatens Kenya’s financial sovereignty,” he added.