Kipchumba Murkomen Reveals Plans To Increase Fuel Levy By 39%

Transport Cs Kipchumba Murkomen has urged the Finance and National Planning Committee of the National Assembly to approve the 39% rise, he said this will aim at generating additional revenue, particularly for road maintenance and development projects.

The increase in fuel levy will have negative economic impacts to the citizens that will lead to hardships in life. Some of the impacts the rise will cause are;

Increased Cost of Living: The immediate effect of the fuel levy hike will be increase in the cost of living. Fuel prices are a major determinant of the cost of transportation and production. As transportation costs rise, so do the prices of goods and services. This inflationary pressure has been particularly hard on low-income households, who spend a significant portion of their income on basic necessities.

Business Operations: For businesses, the increased fuel costs translate into higher operational expenses. This is especially true for sectors heavily reliant on transportation, such as logistics, agriculture, and manufacturing. Small and medium-sized enterprises (SMEs) are particularly vulnerable, as they often operate on thin margins and may struggle to absorb the additional costs without passing them on to consumers.

Transport Sector: The public transport sector will be one of the hardest hit. Motorcycle operators and the minibus taxis that form the backbone of Kenya’s public transport system have had to raise fares to cope with the increased fuel costs. This, in turn, affects commuters who rely on matatus for their daily transportation needs.