It’s baptism by the fire of spiking energy prices for Kenya’s new administration.
President William Ruto’s administration is off to a rocky honeymoon and facing immense pressure Thursday after fuel and electricity prices increased by Ksh 20 and Ksh15, respectively.
Fuel prices in the country shot up after Ruto’s government ended the fuel subsidy in place since April 2021. The State had spent over Sh100 billion on the program, where it paid the oil marketing companies to stabilize pump prices.
Wednesday, the Energy and Petroleum Regulatory Authority (EPRA), the government’s fuel and energy regulator, announced new fuel prices that have hit an all-time high in Kenya’s history.
At the new prices, petrol will cost Sh 179, up from Ksh 159, an increase of Ksh 20 per liter. Meanwhile, diesel will cost Ksh 165 up from Ksh 140, while kerosene will retail at Ksh 147 up from Ksh 127 previously.
The ripple effect of reviewing the prices of energy and petrol saw the Kenya Power and Lighting Company (KPLC), the public liability company that sells electricity to Kenyans, increase its cost of electricity. Thus, the company increased electricity prices by 15.7%, overturning the January cuts by former President Uhuru Kenyatta.
Consequently, Kenyans will now spend more money to buy electricity tokens. For example, with Sh1,000, one can now get 39.5 units of electricity, as opposed to 45.7 units before the review.
When Kenyans complained about the new electricity prices on the official Twitter handle of KPLC, the company said: “The regulator has adjusted the fuel cost and inflation components of the bill, hence the increase in the token prices.”
In his inauguration speech Tuesday, Ruto said he’d have to do away with the fuel subsidies because they were unsustainable and were dealing Kenya’s economy some fatal blows.
“On fuel subsidy alone, the taxpayers have spent a total of KSh. 144 billion, a whopping KSh. 60 billion in the last four months,” Ruto said.
“If the subsidy continues to the end of the financial year, it will cost the taxpayer KSh. 280 billion, equivalent to the entire national government development budget,” he added.
The new energy prices have spurred protests, mockery, and pessimism online and in the streets, with the president’s allies tweeting to repulse the anger of most Kenyans, particularly of the Azimio camp, who are venting their anger on the Kenya Kwanza administration. The local media reported protests across the country on Thursday by motorists who said the new fuel prices were far beyond their reach.
During the campaigns, Ruto promised his supporters that he would lower food and fuel prices to make the cost of living affordable for the majority of poor, who he passionately refers to as hustlers. Ruto blamed former President Uhuru Kenyatta and his handshake partner Azimio flagbearer, Raila Odinga, for the inflation.
On June 15 this year, Ruto tweeted:
“We must bring to a stop an administration that is burdening wananchi with the high cost of living. Voting for Kenya Kwanza on August 9 means voting for affordable prices of fuel, and food, among other basic commodities.”
Leaders of Azimio la Umoja led the online onslaught of the new government, mocking it and those who voted for it for getting the freedom that Ruto had promised them in his campaign.
Ledama Ole Kina, the senator for Narok said: Fuel prices up by Ksh 20+ embrace yourself for a rough ride and more pain to follow…Unga, soon….Sri Lanka will be knocking…”
Months of protests in the nations of Sri Lanka over rising inflation and deficits in food and fuel, among other things, led to the government’s collapse by the people’s force. On July 9, thousands of Sri Lankans stormed the president’s official residence in the pinnacle of the protests by the citizens. President Gotabaya Rajapaksa quit the presidency and fled the country.
Babu Owino, the M.P. for Embakasi East and a diehard Odinga ally slyly joked about the situation in Kenya.
“We wanted freedom, and it’s finally here as fuel prices hike. We are back in the jungle. Hii celebration imekuwa fupi kama Mapenzi ya kuku,” Owino tweeted.
Meanwhile, Gabriel Oguda, a famous tweep took matters spiritual, albeit sarcastically, while hitting at Ruto’s much-touted religiosity.
“The Association of Saved Hustlers in Kenya (ASHOCK) has pleaded with their members to stay calm amid the rising fuel crisis. They’ve assured their members that the fuel subsidy fund will be given as tithe towards the development of this country. Praise God. Praise God Church,” Oguda wrote.
On Wednesday, Dennis Itumbi, a close communication guy in Ruto’s circles who helped popularize the hustler narrative on social media, took to Facebook to explain the situation to his half a million followers to pacify their anger.
“The boldest decision taken by President William Ruto yesterday was bringing to an end the fuel subsidy,” Itumbi said.
He asserted that the subsidy only benefitted a few people and multinationals, who made a lot of money. But his argument rings hollow when people feel the pain at the pump.
He attempted to prepare the public for more pain, saying fuel prices would shoot up,” but the solution will begin and mark the end of shortcuts aimed at benefiting a few.”
Thursday, Itumbi returned to Facebook to cool down his followers and supporters of Kenya Kwanza for the increased prices.
“I am sincerely sorry, dear Hustler Nation team. You are right. You no longer need to fight to access the benefits and privileges of the setting you literally sacrificed for,” Itumbi said. “It is also true that we significantly failed on that front. I hear you all. We will falter and stumble sometimes. That is life.”
Meanwhile, David Ndii, a veteran economist at the center of Kenya Kwanza’s economic plan, asked for patience from Kenyans as the government worked to make things right.
“Friends, supporters, well-wishers. Please, please give us a chance to settle down. If we don’t pick or return your calls, we are working,” Ndii tweeted.
Senator Kiprotich Cherargei of Nandi County claimed cartels were working to frustrate Ruto’s government. He said only 5 oil companies were beneficiaries of the fuel subsidy that President Ruto had ended. 1200 independent petrol stations were excluded.
“H.E. Ruto inherited an economy that is in ICU. Allow him to stop profusely bleeding. Oil cartels are fighting back,” Cherargei said.
Mutahi Ngunyi, a former technical assistant of former president Kenyatta also called for calm from Kenyans. “Give Ruto a chance. Getting to the top is the easy part. Surviving at the top is a nightmare. We must not bully the new president with our needy attitudes,” he said.
A Twitter user known as Jacob Vickey sarcastically mocked the turn of events.
“I am a Kenyan and am so happy with the new fuel prices. Those who are voicing anger should direct their anger elsewhere. This is a God-ordained government. We will not allow people to bad mouth our anointed,” Vickey said.