Prime Cabinet Secretary Musalia Mudavadi has warned that civil servants, including teachers, police officers and civil servant workers, risk missing salaries if the government channels all available resources to fuel subsidies amid the deepening Middle East crisis.

Speaking in Murang’a County on Tuesday, May 26, 2027, Mudavadi said the wage bill crisis would be inevitable if the Treasury prioritised subsidies over other obligations.

“If we take everything and put it into subsidy, how are we going to pay teachers? How will we meet the cost of wages? How will we pay the police for security? How will we pay other workers?” Mudavadi posed.

He noted: “There must be a balance between relief and running government services.”

Mudavadi, who also serves as Foreign and Diaspora Affairs CS, urged Kenyans to brace for extended economic hardship as the Middle East conflict drives global oil prices up.

“Here in Kenya, we are talking of increased fuel prices, but some of our neighbours are already grappling with fuel rationing where motorists can only visit pumps once a week,” he said.

“This is a global challenge beyond normal circumstances. As an economist, even if another government came to power today, you cannot lower fuel prices overnight. Let us not cheat one another,” he added.

The Prime CS revealed that the government has already spent Sh28.9 billion on fuel stabilisation measures and tax relief to cushion Kenyans, as announced by President William Ruto last week.

Govt interventions

More interventions are being explored, he said.

Mudavadi termed the Middle East conflict the most impactful war on fuel supply in recent times, worsened by the drawdown of global oil reserves.

He warned that Kenya’s liquefied natural gas imports from Qatar pass through the Strait of Hormuz, a vital global artery now disrupted.

“If transport becomes difficult, families may resort to charcoal and firewood. That will derail our clean energy campaign and push up charcoal prices, fueling inflation,” he cautioned.

He called for African states to diversify supply chains and accelerate the African Continental Free Trade Area. “We should begin thinking of how to get our gas from Tanzania or Mozambique. This can be a huge relief during crises like this,” Mudavadi said.

Finance bill 2026

The Prime CS dismissed claims that the proposed Finance Bill, 2026, seeks to impose annual rent on freehold land.

“That is purely false, incorrect, and untrue. Land ownership structures remain unaffected,” he said.

“Kueneza uvumi na uwongo ni kitu kibaya sana,” he added.

Mudavadi spoke during the unveiling of the Ahadi Kenya Trust Jigger Archive and Community Resource Centre at Mukuyu, Kiharu Constituency.