Ndindi Nyoro Pushes Plan to Lower Fuel Prices as Budget Committee Reviews Tax Cuts

A proposal by Ndindi Nyoro to slash fuel prices has sparked fresh debate in Parliament after he presented sweeping tax and levy reduction measures before the National Assembly Budget and Appropriations Committee.

The committee, chaired by Samuel Atandi, received detailed submissions from the former Budget Committee chairperson outlining a package of fiscal reforms aimed at cushioning Kenyans from the high cost of living and rising fuel prices.

Appearing before the committee on Wednesday, Hon. Nyoro proposed reducing Value Added Tax (VAT) on fuel from 8 percent to zero, lowering the Road Maintenance Levy Fund (RMLF) and moderating margins within the petroleum distribution chain.

He further suggested the use of surplus funds from the fuel stabilisation programme to cushion diesel prices and ease pressure on transport and production costs across the economy.

According to Nyoro, the proposed interventions could lower petrol prices to approximately Sh187 per litre and diesel to about Sh189 per litre, significantly reducing inflationary pressure on households and businesses.

“The rise in fuel prices has a direct effect on the cost of food, transport and other basic commodities. These measures are intended to ease that burden on Kenyans,” Nyoro told the committee.

The lawmaker stated that the proposed package would require an estimated Sh14 to Sh15 billion adjustment, which he argued could be financed through expenditure rationalisation and targeted budget cuts within the current financial year.

Members of the Budget and Appropriations Committee welcomed the proposals but subjected them to intense scrutiny, questioning their practicality, timing and consistency with earlier fiscal positions.

Some lawmakers expressed concern that reducing the Road Maintenance Levy Fund could negatively affect road infrastructure financing and ongoing securitisation programmes supporting stalled projects.

Committee Chairperson Hon. Atandi assured that the proposals would undergo detailed technical review before any recommendations are made.

“We have listened carefully to the submissions made and the concerns raised by Hon. Nyoro,” said Atandi. “As a Committee, we will listen keenly, interrogate the details further, and consider them alongside other budget proposals before us.”

He added that the committee would work closely with the Parliamentary Budget Office to assess the full fiscal implications of the recommendations.

The proposals come at a time when Kenyans continue to grapple with high fuel prices and increased living costs, making the debate over taxes, subsidies and public expenditure one of the most closely watched discussions in the ongoing 2026/27 budget-making process.