Kiharu MP Ndindi Nyoro has dropped a bombshell, accusing the government of securing a secret Ksh175 billion loan using funds collected from the fuel levy as collateral.
Speaking shortly after the Energy and Petroleum Regulatory Authority (EPRA) announced a fresh spike in fuel prices, Nyoro dismissed the official explanation that global oil prices were to blame. He argued that the real reason behind the hike was hidden borrowing disguised as a tax increase.
“We saw fuel prices go up drastically yesterday, and the explanation given by the government is not accurate,” Nyoro said. “Blaming international market shifts is misleading. The highest global oil prices were recorded in June 2024.”
Nyoro, a former chair of the Budget and Appropriations Committee, claimed that the government quietly introduced a Ksh7 levy per litre of fuel at a time when global oil prices were falling. According to him, the levy was used to back a Ksh175 billion loan that was never brought before Parliament for approval.
“This money is not reflected in government records. That makes it an illegal debt,” he stated, warning of growing financial opacity.
Kiharu MP Ndindi Nyoro delivers a keynote speech during a past function. Photo: Ndindi Nyoro Source: X
Nyoro also questioned the use of gazette notices to sneak in levies tied to long-term financial commitments, urging banks to stop accepting public taxes as loan security without parliamentary oversight.
“If this continues, what stops the government from using VAT or NHIF contributions as collateral next? Where does it end?” he asked.
In its latest price review, EPRA raised fuel prices by nearly Ksh9 across all petroleum products. Super Petrol now retails at Ksh186.31, Diesel at Ksh171.58, and Kerosene at Ksh156.58 in Nairobi.
EPRA insists the new prices are based on a mix of global landing costs, distribution fees, and other factors. But Nyoro’s claims suggest deeper financial maneuvering that could have long-term consequences on Kenya’s economic sovereignty.
As outrage grows over the rising cost of living, Nyoro’s revelations have added fuel to public frustration, with many now demanding transparency and accountability over how taxpayer money is being handled.