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Business umbrella body calls for dialogue in resolving fuel crisis

The Kenya National Chamber of Commerce and Industry (KNCCI), Nyeri branch, is calling for constructive dialogue in resolving the crisis arising from the sharp increase in fuel prices in the country.

Nyeri KNCCI chairperson, Ibrahim Ndung’u Maina, noted that the recent skirmishes witnessed in the country over fuel prices were uncalled for and could have been handled amicably through constructive engagement by sector players.

While speaking to KNA, Maina particularly decried the loss of innocent lives and condemned the wanton destruction of property that was reported in various parts of the country and urged the public transport sector players to always pursue dialogue with the Government in the future before calling for industrial action.

“As the Kenya National Chamber of Commerce and Industry, we believe sustainable solutions can only be attained through goodwill and constructive dialogue so as to achieve economic stability as well as safeguard life and property. We therefore call upon the Government to strengthen security and protect businesses and citizens from criminal infiltration during demonstrations. Leaders across all political affiliations embrace national dialogue and prioritize the welfare of all Kenyans,” he told KNA.

The KNCCI officials have also cautioned leaders against politicizing economic challenges affecting Kenyans but be at the forefront in coming up with clear policies that can help address the economic challenges facing the country.

Maina noted that the two days of national strike by Public Service Vehicle (PSV) operators led to a hefty loss of revenue for the country running into millions of shillings in a scenario that could have been averted.

“Issues of economic importance should not be tribalized or politicized in a way that does not provide long-term solutions to a nation. Policy makers need to review taxation and explore measures that can cushion businesses and people on the rising cost of living, while sector players need to uphold peace, law, and unity and exercise their democratic rights responsibly,” he added.

For the two days of fuel protest, traders in Nyeri town have lamented how they incurred losses after being forced to close their premises for fear of violence.

Wanjohi Kafaga, a farmer and businessman in Nyeri, revealed that the protests greatly affected transport and movement of goods, especially perishable products.

“The strike on Monday and Tuesday led to lost business opportunities in Nyeri and countrywide. We were forced to stay at home, resulting in losses, especially for perishable goods such as milk that couldn’t reach the market. Monday protests were also violent, with goons taking advantage of the ensuing chaos to break into people’s businesses,” said Kafaga.

On Monday Nyeri Governor Mutahi Kahiga had called on the Government to enact measures that will cushion Kenyans against impacts of skyrocketing fuel prices.

Kahiga said ordinary Kenyans should not be left to suffer from the soaring fuel prices at times when they are going through economic hardships.

This followed a decision by the Matatu Owners Association (MOA) to withdraw commuter services countrywide over fuel costs, a move that brought public transport across the country to a halt.

The strike was eventually called off yesterday after the public sector players agreed to hold further talks with the Government on ways to address the matter.

“We continue to see fuel prices going up. This has a trigger effect on all sectors of our lives. The transport sector, which is paralyzed, and the business sector, through resultant increases in prices of goods and commodities all hurt Mwananchi. The Government must act now and bring down the cost of fuel,” posted Kahiga on his Facebook page.

“Regardless of the global escalation. The Government of Kenya has a moral obligation to cushion ordinary Kenyans from these price hike effects.”

Among the measures Kahiga had proposed is the zero rating of all fuel products (currently at 8 percent), a move he says will significantly bring down the cost of fuel.

He also called for the reduction of the Road Maintenance Levy Fund (RTMLF) from Sh 24 per litre to Sh 14 and increased fuel subsidy from Sh 11 billion to at least Sh 17 billion.

“The Government must increase the subsidy from Sh 11billion to 17 billion. This will bring the cost of fuel further. To achieve this, Hon. Speaker Wetan’gula must reconvene parliament and enact these favourable recommendations. Kenyans must also watch how MPs vote in Parliament. The fuel marketers must get their profit margins reduced to reasonable levels. It doesn’t help when they make extraordinary profits at the expense of Kenyans,” he added.

By Samuel Maina and Sharon Nashipae

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