“Diesel Would Hit Sh300”: Mbadi Tears Into Nyoro’s Fuel Price Reduction Proposal

Treasury Cabinet Secretary John Mbadi has hit back at critics over the country’s rising fuel costs, taking a direct swipe at Kiharu MP Ndindi Nyoro by declaring him “not an expert” on the issue. Addressing a public consultative forum on the proposed Finance Bill 2026 at the University of Nairobi, Mbadi used the platform to set the record straight and dismantle what he labeled as misleading narratives regarding how the government manages fuel prices.

Mbadi’s remarks come in response to a series of legislative proposals Nyoro submitted to the National Assembly. The Kiharu lawmaker claims his plan could slash fuel prices, particularly diesel, by at least Sh54 per liter. Among his main recommendations, Nyoro wants to revoke the 2024 levy order to cut the Road Maintenance Levy Fund charge by Sh7 per liter, effectively dropping it back down from Sh25 to Sh18.

Nyoro is also targeting the tax structure by proposing amendments to the VAT Act that would exempt petroleum products entirely, wiping out the current eight percent VAT rate. To further lower costs, his plan seeks to trim the profit margins of fuel importers and distributors by Sh4 per litre, while injecting an additional Sh5 billion into a dedicated diesel subsidy.

Defending his strategy, the lawmaker argues that these adjustments are crucial for immediate relief.

“These amendments are short-term measures aimed at reducing the inflationary and sticky economic effects arising from the current high fuel prices,” Nyoro said in the proposals submitted to Parliament.

Mbadi, however, flatly rejected the proposals, countering that the government has already moved far past Nyoro’s suggestions and poured massive resources into protecting consumers from soaring fuel costs. He revealed that the state has spent Sh11.2 billion over the last two months alone to shield Kenyans from the fallout of the ongoing Middle East crisis.

“And we have now even added another Sh2.7 billion. The first month, we provided Sh6.2 billion; the second month, it was Sh5 billion. We have already provided Sh11.2 billion,” Mbadi said.

The cabinet secretary noted that this upcoming Sh2.7 billion injection will push the government’s total subsidy commitment to Sh13.9 billion. He argued that Nyoro’s financial math falls dangerously short of what the market actually requires to stay stable.

“So tell him we are at Sh13.9 billion, way beyond the Sh5 billion. His Sh5 billion would leave the prices of diesel very high; in fact, diesel would go to Sh300. So tell him he’s not an expert if that is his thinking,” Mbadi said.

Despite the Treasury chief’s fierce pushback, Parliament has agreed to put Nyoro’s proposals on the table. The National Assembly has officially handed the recommendations over to the Budget and Appropriations Committee alongside the Departmental Committee on Finance and National Planning.

These committees will now grill the lawmaker on the fiscal ripple effects of his plan, examining how the proposed cuts would impact the already approved budget and the country’s existing financial obligations.

The post “Diesel Would Hit Sh300”: Mbadi Tears Into Nyoro’s Fuel Price Reduction Proposal appeared first on Nairobi Wire.