Fuel crisis: Matatu stakeholders call on Parliament to intervene amid VAT zero-rating appeal
By Aloys Michael, May 20, 2026Matatu industry stakeholders have intensified pressure on Parliament to urgently intervene in the country’s escalating fuel crisis, warning that rising pump prices are crippling the public transport sector and worsening the cost of living for millions of Kenyans.
Speaking during an interview on a local TV station on Wednesday, May 20, 2026, Alexander Riithi, Head of Programmes at the Institute for Social Accountability (TISA), said lawmakers must take the lead in addressing the tax measures driving up fuel prices, particularly Value Added Tax (VAT) and other levies imposed through legislation.
“Nobody is happy when the transport is not working. We should find a balance between the representatives that we will have negotiating. When we leave it to the business people, they will only look at one side of the coin. We cannot solve this problem without Parliament being involved,” Riithi said.
He argued that responsibility for the fuel tax burden lies squarely with Parliament because legislators enacted the laws imposing the charges currently affecting consumers and transport operators.
“In my view, these fuel problems should not be at the President’s doorstep. The people who should be pushing very hard are Parliament, because all these taxes are legislated by Parliament. If we are going to make any changes, it is not the president, it is the Parliament,” he added.
The remarks come amid mounting pressure on lawmakers following a formal appeal by Kiharu Member of Parliament Ndindi Nyoro seeking the recall of the National Assembly from recess to urgently deliberate on tax reforms aimed at lowering fuel prices.
Nyoro made the request on Saturday, May 15, 2026, shortly after the Energy and Petroleum Regulatory Authority (EPRA) announced a sharp increase in fuel prices that sparked public outrage and a nationwide matatu strike.
In a statement shared on his X account, Nyoro said the recall would allow MPs to process proposed amendments targeting key fuel-related taxes.
Among the proposals is reducing VAT on fuel from the current 8 per cent to zero-rated status, lowering the road maintenance levy, and introducing targeted relief measures to cushion households and businesses from rising transport costs.
“Following our proposal to amend various laws with the aim of reducing fuel prices, we have written to the Speaker of the National Assembly with a request to recall the House from recess at the earliest, preferably Monday, to process the various proposed amendments,” Nyoro stated.
Fuel tax cut
According to the legislator, the proposed changes would provide immediate relief to wananchi grappling with inflation and high operational costs across multiple sectors of the economy.
Calls for urgent intervention have also gained support in the Senate. Vihiga Senator Godfrey Osotsi urged Parliament to move swiftly in reducing the tax burden on fuel, arguing that the current taxation regime is punishing ordinary Kenyans already struggling with increased living expenses.
Speaking during a burial ceremony in Busali on Saturday, May 16, 2026, Osotsi said senators would push for VAT on fuel to be reduced to zero per cent.
“In the Senate, we are going there to push for VAT to be reduced further to zero per cent, so that it becomes zero-rated,” Osotsi said.
“We also want the road maintenance levy to be reduced. We should not place an even heavier burden on our people. Taxes have already gone up, the cost of everything has increased, and now we are again increasing fuel prices for them.”
Strike suspended
The growing political pressure follows a two-day nationwide matatu strike that paralysed transport services in several towns and cities before operators agreed to temporarily suspend the industrial action.
Interior Cabinet Secretary Kipchumba Murkomen announced on Tuesday, May 19, 2026, that matatu operators had suspended the strike for one week to allow high-level negotiations with the government.
“Following consultations, it was agreed there was a need for negotiations at a high level within one week between now and May 26 and the strike is suspended to allow for negotiations,” Murkomen said.
Transport sector leaders welcomed the talks but warned that industrial action could resume if the government fails to implement meaningful reforms within the agreed timeline.
The Association of Matatu Transport Owners (MOA) chairperson Kushian Muchiri said operators had resumed services in good faith while awaiting the outcome of negotiations.
“We are glad negotiations have started in earnest, and grievances have been noted by the government,” Muchiri stated.
On his part, Federation of Public Transport Sector chairman Edwin Mukabanah apologised to commuters affected by the disruption but maintained that operators were prepared to return to the streets if no agreement is reached.
“If this is not taken seriously within the time agreed, the strike will be back,” Mukabanah warned.
The government has defended some of its interventions, saying subsidies and tax adjustments have already been introduced to cushion consumers, including a Ksh10 reduction in diesel prices and Ksh12 billion in subsidies over the past two months.