Parliament to hear Ndindi Nyoro’s proposals on cutting fuel costs
By Aloys Michael, May 21, 2026The National Assembly has agreed to consider proposals by Ndindi Nyoro aimed at reducing fuel prices, giving the Kiharu Member of Parliament (MP) an official platform to present measures he says could lower the cost of fuel.
The move comes as the government continues negotiations with transport sector stakeholders following the nationwide matatu strike triggered by rising fuel prices.
In a communication from Parliament’s Parliamentary Budget Office, on Wednesday, May 20, 2026, the House confirmed receipt of Nyoro’s May 15, 2026, letter outlining proposed legislative amendments intended to ease fuel costs and cushion Kenyans from the high cost of living.
“The proposals shall be processed in accordance with the provisions of Article 114 of the Constitution and the National Assembly Standing Orders,” the letter signed by Director of the Parliamentary Budget Office Martin Masinde stated.
Parliament said the proposals had already been forwarded to the relevant House committees for consideration.
The Budget and Appropriations Committee, together with the Departmental Committee on Finance and National Planning are expected to engage Nyoro on the financial implications of the proposed changes on the current and upcoming national budgets, as well as existing obligations tied to the Road Maintenance Levy Fund.
“As per the established practice, the Budget and Appropriations Committee and the Departmental Committee on Finance and National Planning shall require you to make representations on the implications of your proposals,” the communication read in part.
In his submission to Parliament, Nyoro proposed two key interventions aimed at lowering retail fuel prices for super petrol, diesel and kerosene.
Nyoro’s proposals
The first proposal seeks to reduce the Road Maintenance Levy Fund charge by Ksh7 per litre through revocation of the 2024 levy order that increased the charge from Ksh18 to Ksh25 per litre.
The second proposal seeks to amend the VAT Act by removing petroleum products from taxable supplies and classifying them as VAT-exempt products, effectively reducing VAT on fuel from the current eight per cent to zero.
“These amendments are short-term measures aimed at reducing the inflationary and sticky economic effects arising from the current high fuel prices,” Nyoro stated in his letter.
He has also proposed reducing the profit margins of importers and distributors, currently capped at Ksh17.39 per litre for super petrol and Ksh17.31 for diesel, alongside an additional subsidy of Ksh5 billion exclusively for petrol fuel.
“The measures will reduce the price of diesel by approximately Ksh54 per litre,” he said.
The proposals come amid growing public anger over fuel costs following the May 14, 2026, review by the Energy and Petroleum Regulatory Authority (EPRA).
Quelling fuel strike
The review increased the price of Super Petrol by Ksh16.65 per litre and Diesel by Ksh46.29, pushing pump prices in Nairobi to Ksh214.25 and Ksh242.92, respectively.
The increase triggered a nationwide strike organised by the Transport Sector Alliance, disrupting movement in major towns and cities as matatus, online taxi operators, cargo transporters and motorcycle riders withdrew services.
Thousands of commuters were forced to walk long distances to work, while others paid inflated fares on the few routes that remained operational. The transport disruption also affected schools, businesses and supply chains, increasing pressure on the government to intervene.
In response, the government convened talks with transport stakeholders at Transcom House led by Energy Cabinet Secretary Opiyo Wandayi and Transport Cabinet Secretary Davis Chirchir.
Following the negotiations, the government announced a Ksh10.06 reduction in diesel prices and increased kerosene prices to narrow the gap between the two products and reduce the risk of fuel adulteration.
However, transport operators initially rejected the concession, insisting it fell below their demand for a Ksh30 to Ksh35 reduction.
The standoff culminated in a public disagreement between Wandayi and Tour Guide Association chairperson Kennedy Kaunda during a live press briefing on Monday evening.
After further consultations on Tuesday, May 19, 2026, spearheaded by Wandayi and Interior Cabinet Secretary Kipchumba Murkomen, operators agreed to suspend the strike for seven days to allow room for dialogue with the government.
They warned, however, that they would resume the strike if no agreement is reached.
The government has maintained that the fuel crisis is largely driven by global instability linked to tensions involving the US, Israel and Iran, which have pushed up international fuel, freight and insurance costs.
Even so, pressure continues mounting on the government to find sustainable measures to lower fuel costs as Kenyans grapple with rising transport expenses, high food prices and shrinking household budgets.