By John Ikani
As part of efforts geared towards preventing a rise in prices of premium motor spirit (PMS) otherwise known as petrol, the Government of Kenya has rolled out a fresh round of fuel subsidies.
The new subsidy regime will see a litre of petrol remain at the current price despite the recent rise in the cost of oil, eliminating fears of another hike as Kenyans grapple with the rising cost of other essential goods.
Recall that the Government had earlier hinted that it could remove the subsidy ahead of its monthly review with authorities describing the existing fuel subsidy as “unsustainable”.
However, there was a last-minute change of heart and the Government authorised the spending of some $141m (£120m) to retain current retail fuel prices for another 30 days.
Without the subsidy, a litre of petrol in the Kenyan capital Nairobi would have hit $1.80. At the moment, it costs $1.34.
Over the last year, Kenya has spent over $860m to subsidise fuel in the face of rising prices in global market.
