The Democratic Party of Kenya has blamed the government’s taxation and borrowing policies for rising fuel prices, calling for the immediate suspension and parliamentary review of fuel levy securitisation arrangements.
In a statement issued Wednesday by party leader Justin Muturi, the party dismissed claims that global tensions were the main cause of high fuel costs, saying the burden facing Kenyans was largely driven by local fiscal decisions.
“Don’t blame Iran. Don’t blame the Strait of Hormuz. Blame your fiscal mismanagement,” the statement read.
The party said while global oil market changes affect prices, domestic taxes and borrowing structures were placing greater pressure on consumers already struggling with the high cost of living.
According to the statement, Kenyans currently pay Sh25 per litre through the Road Maintenance Levy Fund, with part of the money already committed to infrastructure financing deals.
“Out of this amount, the government has already committed Sh12 per litre to secure infrastructure bonds and financing arrangements through Special Purpose Vehicles (SPVs), raising nearly Sh300 billion upfront,” the statement said.
The Democratic Party argued that the arrangement forces citizens to repay long-term debts through fuel levies instead of using the money solely for road maintenance.
It also raised concerns over transparency and accountability, saying the securitisation of fuel levy revenues lacked adequate public participation and disclosure.
The party further criticised spending on road agencies such as KeRRA and KURA, saying overlapping roles had increased pressure on taxpayers despite worsening economic hardship.
It argued that urban and rural roads are devolved functions and noted that MPs already receive NG-CDF allocations that can support local infrastructure projects.
The party said the government should instead prioritise economic relief measures similar to those introduced during the COVID-19 period.
Among the proposals put forward are the immediate suspension and parliamentary review of all fuel levy securitisation agreements, full disclosure of infrastructure bonds and SPV deals, and a 50 per cent reduction in budgets for KeRRA and KURA until economic conditions improve.
It also called for a full audit of road contracts and contractor payments, alongside increased spending on food security, healthcare, job creation, and direct household support.
“The government cannot continue blaming foreign conflicts while ignoring its own fiscal excesses and policy failures,” the statement said.
The party warned that Kenyans were increasingly overtaxed and excluded from national economic priorities, adding that “you cannot tax hungry citizens into prosperity.”
In addition, the Democratic Party of Kenya has accused the government of driving up fuel prices through taxes and borrowing arrangements tied to fuel levies, saying local fiscal policies are hurting Kenyans more than global tensions. The party wants Parliament to suspend and review all fuel levy securitisation deals and fully disclose infrastructure financing agreements. It is also pushing for cuts to road agency budgets and more spending on economic relief.
The party says Sh12 from every litre of fuel sold has already been committed to infrastructure bonds and SPV financing deals that raised nearly Sh300 billion upfront. The party argues the arrangements lack transparency and force Kenyans to repay long-term debts through fuel levies. It has demanded a full audit of road contracts and contractor payments.
Justin Muturi’s party has rejected claims that foreign conflicts are solely to blame for rising fuel prices, insisting government taxation and borrowing policies are the bigger problem. The party also criticised continued spending on KeRRA and KURA despite economic hardship facing citizens. It now wants government spending redirected toward healthcare, food security, job creation, and direct support for struggling households.