Siaya Governor James Orengo has mounted a scathing attack on the latest fuel price hike, terming it punitive, economically reckless and a direct blow to already struggling households and hopes the reduction announced soon after will immediately reflect on the fuel pumps across the country.
Orengo said the 25 per cent increase was unjustified and would trigger a chain reaction across the economy by driving up the cost of production, transport and essential goods, ultimately slowing down growth.
“The increase by 25 per cent is completely unjustified. What it translates into is a higher cost of production, and that means the economy is not going to grow; growth is going to slow down,” he said.
Addressing the media in Kisumu on Wednesday, Orengo warned that the move would disproportionately hurt ordinary Kenyans, particularly those dependent on the informal sector, including boda boda operators, small traders and millions who rely on public transport daily.
“When you increase fuel prices, it affects all other sectors. Even simple activities by ordinary Kenyans become more expensive. Those in the boda boda sector, those who depend on public transport, and even individuals who own cars are now bearing an additional burden,” he added.
The governor also linked the price hike to deeper structural and governance concerns within the petroleum sector, questioning the opacity surrounding a controversial consignment of fuel recently imported into the country.
“This is happening at a time when we have a scandal involving petroleum products that were brought into the country and some people were arrested. It remains unexplained. My understanding is that the consignment is already in the market and some individuals have made money at a great cost to the country,” he said.
Orengo argued that the current crisis cannot be blamed solely on global factors, but is partly a result of local inefficiencies and alleged corruption.
“We are suffering not just because of external pressures such as the war in the Middle East, but also due to artificially created costs arising out of corruption in the oil sector, and a government that appears unconcerned about the lives and interests of ordinary Kenyans,” he said.
He demanded accountability from the state, saying those responsible must explain the pricing structure and the circumstances surrounding the fuel imports.
“They stand accused and must give explanations. If this is the path to economic transformation that has been promised, then I have serious doubts,” he added.
To mitigate the impact, Orengo called for urgent fiscal intervention, including a significant reduction in Value Added Tax (VAT) on fuel, which was later announced by Energy and Petroleum Regulatory Authority (EPRA) to 8 percent, arguing that the current rate is unsustainable under prevailing economic conditions.
But Orengo explained, “Reducing VAT to 8 per cent will not address the problem. If there is genuine intention to ease the burden on Kenyans, then VAT should be reduced to a maximum of six per cent, with some critical sectors being zero-rated to support production and growth,” he said.
He cautioned that without immediate corrective measures, the rising fuel costs risk undermining Kenya’s competitiveness and further shrinking household incomes, deepening the cost-of-living crisis.
In Kisumu, the effects of the fuel hike are already biting, with commuters grappling with sharp increases in fares and reduced availability of public service vehicles.
Passengers at major bus stops reported paying significantly higher fares, with some routes doubling during peak hours as operators pass on the rising fuel costs.
“I used to pay Sh50 to town, but now it’s Sh80 or even Sh100. Today I had to wait for long because there were fewer vehicles,” said Victor Ogondi, a commuter.
Transport operators say the situation has forced many to scale down operations, with some vehicles withdrawn from service due to high running costs.
Joseph Opiyo, a matatu driver plying the Kisumu–Ahero route said sustaining operations has become increasingly difficult.
“Fuel is too expensive. If we don’t increase fares, we will make huge losses. Some vehicles have been parked because business is no longer viable,” he said.
Boda boda riders have also adjusted their charges upward, further compounding the burden on residents who depend on them for last-mile connectivity.
The combined effect has been longer waiting times, overcrowding and rising frustration among commuters, underscoring the widening impact of the fuel price hike on everyday life.
By Chris Mahandara
