Kiharu MP Ndindi Nyoro has proposed drastic reductions in government spending, including a Sh100 billion cut on foreign travel budgets, as part of measures he says could help bring down fuel prices and ease pressure on households.
While appearing before the National Assembly Departmental Committee on Budget during discussions on fuel price control measures, Nyoro said the government must rethink how it spends public money if it wants to provide relief to consumers struggling with the rising cost of fuel.
He argued that huge allocations for overseas trips across the Executive, Parliament and the Judiciary should instead be redirected to the Fuel Subsidy Fund to cushion Kenyans from high pump prices.
"Cut travel budgets for the entire government. Cut operation and maintenance spending. This will create resources that can be redirected to fuel subsidies," Nyoro stated on Wednesday.
The former chairperson of the Budget Committee also questioned the increase in funding to some government offices, including State House, saying some institutions had received a 25 per cent rise in allocations despite the tough economic situation facing many Kenyans.
Apart from cutting travel expenditure, Nyoro proposed the removal of the 8 per cent VAT charged on fuel and called for a reduction of at least Sh7 from the Road Maintenance Levy Fund.
According to him, lowering taxes and levies on petroleum products would help reduce the burden being felt by consumers and businesses across the country.
His proposals, however, faced resistance from members of the committee, with some lawmakers accusing him of changing positions on the same issues he defended while leading the Budget Committee.
"When you say we reduce the Road Maintenance Levy Fund by Ksh.7, yet it was during your time as chair when you stated road construction had stalled because of a lack of securitising the road levy," said Walter Nyakundi.
Nyoro insisted that his proposal was practical and would still allow the government to support road projects through alternative financing while protecting consumers from additional taxes.
"The Ksh.7 deduction will mean that the government relieves Kenyans of further taxation by relying on the Fuel Subsidy Fund. When I was chair, I always advocated for fuel price reduction through other means," he stated.
Committee chair Samuel Atandi also questioned whether the government could sustain such proposals at a time when it is under pressure to finance a large budget.
"With the huge budget expenditure burden, it is impossible to cut off revenue," Atandi said.
Nyoro also took issue with the government-to-government oil import arrangement, saying the system has not helped lower fuel costs as expected.
"G-to-G is more expensive for us because of the oil source issue and companies being used as proxies," he said.
The discussion later shifted to electricity prices after members of the committee questioned why Nyoro had not proposed similar interventions in the energy sector.
"Why aren't you proposing a reduction of electricity prices, or is it because you're a beneficiary?" Atandi asked.
Nyoro dismissed the allegations and accused some committee members of deliberately targeting him during the session.
"It appears the questions are premeditated. Anyway, better me, who is investing locally," he responded.
Khwisero MP Christopher Aseka also challenged Nyoro over his silence on electricity costs.
"You don't want to touch electricity because you know you are a shareholder," Aseka said.
Nyoro maintained that he had already responded to the concerns and blamed private power supply firms for the high electricity charges.
"Aseka, you keep asking the same question about electricity prices, yet I've answered it. This is because you have premeditated questions. The problem with high electricity prices is because of private companies supplying power," he said.
The Departmental Committee on Budget is currently reviewing several recommendations aimed at reducing fuel prices and is expected to submit its report before the matter is debated by the Committee of the Whole House.