Treasury Cabinet Secretary John Mbadi has dismissed allegations that the International Monetary Fund (IMF) forced Kenya to increase fuel prices or maintain heavy taxes on petroleum products amid the ongoing nationwide transport strike.
Speaking on Monday as protests and transport disruptions intensified across the country, Mbadi clarified that the IMF only offers economic guidance to member states and does not impose direct tax measures or dictate fuel pricing policies.
According to the CS, reports suggesting that the latest fuel price hike was a direct result of IMF pressure are misleading and politically motivated.
Mbadi explained that international financial institutions such as the IMF and the World Bank mainly advise governments on how to cushion economies against global shocks, including fluctuations in international oil prices.
“The IMF does not sit in Nairobi to decide how much Kenyans should pay for fuel. Policy decisions are made by the government after assessing the country’s economic realities,” Mbadi stated.
The Treasury CS further noted that Kenya, like many developing economies, has been struggling with rising global crude oil prices, exchange rate pressures, and increasing import costs, factors he said have contributed significantly to the current fuel pricing challenges.
His remarks come just hours after the Energy and Petroleum Regulatory Authority announced sharp increases in fuel prices, sparking outrage among motorists, transport operators, and ordinary Kenyans already grappling with the high cost of living.
The nationwide strike, led by matatu operators and transport sector stakeholders, entered a critical phase on Monday after operators rejected a proposed Ksh10 reduction in diesel prices, terming it insufficient.
Transport operators argued that the reduction would have little impact on operational costs, especially after the recent sharp increase in diesel prices that significantly affected daily transport expenses.
Several matatu associations maintained that public transport vehicles would remain off the roads until the government introduces more meaningful interventions to lower fuel costs.
The strike has disrupted transport services in major towns and cities, with thousands of commuters stranded as operators stayed away from work in protest against the rising fuel prices.
Industry players insist that unless the government reviews taxes imposed on petroleum products, transport fares will continue rising and businesses across the sector will remain under pressure.
Economic analysts warn that the prolonged standoff could further affect inflation, food prices, and overall economic activity if a compromise is not reached soon between the government and transport stakeholders.
Meanwhile, the government says it is continuing consultations with stakeholders in a bid to restore normalcy while balancing the country’s fiscal obligations and economic stability.