Ndindi Nyoro outlines multi-pronged strategy to reduce fuel costs
By Faith Lagat, May 21, 2026Kiharu Member of Parliament Ndindi Nyoro has proposed a multi-pronged strategy aimed at reducing fuel prices by up to Ksh54 per litre for diesel and bringing super petrol below Ksh188. Parliament has begun processing the proposals following public concern over rising fuel costs across the country.
Nyoro made the proposals during an interview on Thursday, May 21, 2026, and in a letter addressed to the Speaker of the National Assembly dated May 15, 2026.
The plan includes exemption of fuel products from VAT, reduction of the Road Maintenance Levy, cuts in profit margins across the supply chain, and revival of the Fuel Stabilisation Fund with an additional Ksh5 billion allocation for diesel price support.
“If we do all those measures, we’ll have reduced the price of diesel by around 54 shillings and we’ll have reduced the price of super to below 188,” Nyoro stated during the interview. He added,
“We must do a trade-off. Whether we want to spend some money now and then we arrest future crisis in the economy or we want to arrest the economy just at a lazy sphere, do nothing… and then we’ll have a big catastrophe going forward.”
He further clarified his position on taxation, stating that he supports exemption rather than zero-rating, arguing that it would prevent complications in input tax claims while maintaining functionality within the tax system.
Proposed Fuel Price Reforms
Nyoro’s proposal outlines four key interventions.
The first is exemption of petroleum products from VAT, targeting super petrol and diesel. The second is a reduction of the Road Maintenance Levy from the current level to Ksh18 per litre, which he says would save motorists about Ksh7 per litre.
The third measure is a reduction in profit margins for importers, distributors and marketers by Ksh4 per litre. The fourth is the revival and expansion of the Fuel Stabilisation Fund through an additional Ksh5 billion injection to stabilise diesel prices.
He noted that the combined interventions are intended to ease pressure on households and businesses affected by rising transport and production costs.
Parliamentary Review and Fuel Price Context
The National Assembly confirmed it will consider the proposals under Article 114 of the Constitution and relevant Standing Orders. The proposals have been referred to the Budget and Appropriations Committee and the Departmental Committee on Finance and National Planning.
Nyoro is expected to appear before the committees to explain the fiscal impact on current and future budgets as well as the Road Maintenance Levy Fund.
The proposals come shortly after the Energy and Petroleum Regulatory Authority (EPRA) review of May 14, 2026, which increased super petrol by Ksh16.65 to Ksh214.25 per litre in Nairobi and diesel by Ksh46.29 to Ksh242.92 per litre.
The increases triggered a nationwide transport disruption led by the Transport Sector Alliance, affecting movement of people, goods and services.
Following negotiations involving Energy CS Opiyo Wandayi, Transport CS Davis Chirchir and Interior CS Kipchumba Murkomen, government proposed a Ksh10.06 reduction on diesel and adjustments to kerosene prices. Operators suspended the strike for seven days pending further engagement on fuel pricing concerns.
Economic and fiscal considerations
Nyoro also urged broader fiscal adjustments, including reduced government expenditure and review of public spending allocations.
He cited Constituency Development Fund allocations, parliamentary expenditure and foreign travel costs as areas that could be reviewed to create fiscal space for fuel subsidies and price stabilization measures.
He indicated that the proposals are part of short-term interventions aimed at addressing inflationary pressures while broader structural reforms are considered under ongoing economic policy discussions.