By Ebi Kesiena
The Kenyan government has reinstated a small subsidy to stabilise retail fuel prices for the next 30 days.
The development comes following public anger over the high cost of living and months of violent protests across that country.
Recall that President William Ruto removed fuel and maize flour subsidies in September last year after taking office and increased taxes this year.
The subsidies were put in place by his predecessor Uhuru Kenyatta, but Ruto noted that he preferred subsidising production rather than consumption.
The move was also aimed at cutting government spending as the government seeks to get a handle on debt repayments.
Al Jazeera reports that the Energy and Petroleum Regulatory Authority (EPRA), Kenya’s energy regulator, said oil marketing companies will be compensated from the Petroleum Development Fund.
Also, the Energy and Petroleum Regulatory Authority (EPRA) announced that the maximum retail price of a litre of petrol would remain constant at 194.68 shillings ($1.35).
While the Government will shoulder an increase of 7.33 shillings ($0.05) through a price stabilisation fund.
Fuel prices shot up when President Ruto removed the subsidies and spiked again in July after the government doubled the fuel tax.
The subsidy cuts as well as recent tax hikes has however increased living costs and contributed to violent anti-government protests in recent months.
