NAIROBI, Kenya Jan 1 – President William Ruto has assured that there will be no increase in electricity tariffs as subsidies were already removed in August.
Speaking in a church service in Mombasa, President Ruto castigated those spreading rumors that cost of living was set to skyrocket as the government was mulling increasing the electricity prices.
He asserted that they will be no additional charges in electricity stating that the government was working on creating electricity tariffs that support Kenyans.
“I want to allay the fears that are being spread by people that they will an increase in electricity cost. They will be no additional charges today or in the future as we removed the subsidies in August,” he stated.
“We are conducting a whole review of tariffs in all our energy requirements and in a few months we will have public consultations in three months time.” he stated.
The Head of State mentioned that the review of the electricity tariffs was aimed at revitalizing the manufacturing sector with the intention of creating a conducive operating environment for them and increase its contribution to the country’s GDP.
“We will ensure that we have tariffs that are sensitive to those at the bottom of the pyramid are not affected as well as those in the manufacturing sector,” Ruto stated.
The President reiterated that his government is on track on the move to withdraw several subsidies which he said were unsustainable and counterproductive to the country’s economy in the long-term.
“I want to assure the country that we have transitioned from an economy based on debt to an economy based on revenue. That’s the kind of sure footing that we are looking at,” Ruto said.
This comes even as Azimio coalition is set to push for a full reinstatement of fee subsidies and demand for a review of university student loans.
In a statement by National Assembly Minority Leader Opiyo Wandayi, the coalition noted that harsh economic times have continued to oppress families as a result of the removal of the subsidies.
“We have noticed that the Kenya Kwanza administration loathes subsidies. Whatever they choose to call it, the Ruto administration will have to cushion Kenyans against the ravages of a melting economy,” he stated.
Wandayi blamed the government for the action saying it has led to a steep increase of basic commodity prices with Kenyans facing the brunt of the decision.
The Majority Leader decried that there exists a lot of uncertainty in the Ministry of Education on whether there will be a fee increase following the removal of the subsidy.
“The Ruto regime has removed the subsidy but insists that fees remain the same. We are going to demand the full reinstatement of the subsidy. We are going to demand a review of the university students’ loan regime to ensure it is in tune with the prevailing economic circumstances,” he said.
Secondary school parents will dig deep into their pockets to cater for school fees starting January 2023 after the government did away with a subsidy that had been introduced to secondary school fees.
Due to the compressed school calendar which was occasioned by Covid-19, the ministry reduced fees by Sh8,500.
According to a circular from the ministry, parents will have to pay Sh53,554 for national schools, as was before the reduction.
