Prominent lawyer Willis Otieno has launched a scathing attack on the Kenyan government and the Energy and Petroleum Regulatory Authority (EPRA) over the latest surge in fuel prices, calling it economic banditry in a suit and tie.

His remarks come amid public outrage following EPRA’s latest price adjustment, which saw petrol and diesel prices jump significantly. Many Kenyans have expressed concern over the impact on the cost of living and the lack of transparency from government agencies.

Otieno underscored the growing frustration with the administration’s handling of economic policies and the perceived misuse of regulatory mechanisms to cover up deeper fiscal challenges.

In a statement on his X account on Sunday, July 20, 2025, Otieno criticised the opacity surrounding the pricing structure, saying that Kenyans are unknowingly servicing undisclosed government loans through fuel levies.

“We’re not just buying petrol. We’re also repaying a secret loan you never asked for,” read the statement.

He accused the government of burdening future generations with unsustainable debt while using technical financial language to mask the true cost of fuel

“They are stealing from the unborn, indebting generations, and hiding it under complex financial jargon, hoping you won’t notice,” Otieno stated.

Govt defends fuel hike

Treasury Cabinet Secretary John Mbadi defended the government’s decision not to cushion consumers from the recent sharp increase in fuel prices, saying the State must choose carefully when to intervene due to pressure on the Petroleum Development Levy (PDL) fund.

“The government chooses when to intervene. Epra felt we did not need to do it (apply a subsidy) this time. Remember that the kitty has other uses, and you can deplete the kitty. Epra felt that the increase in pump prices could be absorbed, but if we see prices going higher, then the government will intervene,” Mbadi said.

In the latest monthly review that runs until August 15, 2025, the Energy and Petroleum Regulatory Authority (Epra) did not apply any subsidy, marking the second straight month the government has held back from using the fund. Smart water management solutions

The previous price cycle, between June 15 and July 14, 2025, also went without support from the PDL kitty.

As a result, pump prices jumped sharply. In Nairobi, a litre of petrol rose by Ksh8.99 to Ksh186.31, while diesel increased by Ksh8.67 to Ksh171.58. Kerosene, which is mainly used by low-income households, climbed the most, by Ksh9.65 to Ksh156.58 per litre.

The government has yet to confirm whether the PDL fund is depleted, but recent actions point to mounting pressure on the kitty.

In the year to June 2024, the State illegally withdrew Ksh58 billion from the Railway Development Levy to finance fuel subsidies, raising concerns about whether the PDL fund had already run out or was insufficient.

Fuel subsidies previously helped keep prices in check, preventing increases of up to Ksh9 per litre for diesel, Ksh7 for petrol, and Ksh8 for kerosene. But over time, the fund has come under strain, especially when its collections were diverted to cover unrelated expenditures.

From July 2023 to March this year, the government collected about Ksh43.9 billion through the PDL, which is charged at Ksh5.40 per litre of petrol and diesel, and Ksh0.40 per litre of kerosene.

While meant to stabilise fuel prices, the levy’s impact has weakened due to off-budget spending and legal breaches in how the funds are used.