The sharp rise in fuel prices is emerging as one of the biggest political and economic tests facing Treasury CS John Mbadi and his Energy counterpart Opiyo Wandayi.
The two Cabinet Secretaries were brought into government as
part of President William Ruto’s broad-based administration following the June
2024 Gen Z protests.
Now they are under mounting pressure over the rising cost of
fuel and its ripple effects on the economy.
Their handling of the crisis has attracted criticism from
sections of government-allied MPs, opposition figures and ordinary Kenyans, who
argue that the current fuel pricing regime is worsening the cost of living and
threatening the political standing of the Kenya Kwanza administration ahead of
the 2027 General Election.
When Ruto dissolved his Cabinet in the aftermath of the
anti-government protests in June 2024, several senior ODM figures were
brought into government in what was presented as a move to stabilise the
country politically and economically.
Among those appointed were Mbadi to the National Treasury,
Wandayi to the Energy Ministry, Wycliffe Oparanya to the Cooperatives docket
and Hassan Joho to the Mining ministry.
The late former Prime Minister Raila Odinga strongly
defended the appointments at the time, expressing confidence that the ODM
figures joining government would help improve service delivery and economic
management.
“We have given him experts, you will now see things
changing,” he told traders at Toi Market in Nairobi on August 5, 2024.
Raila added that Ruto had specifically requested individuals
capable of helping him deliver on his promises to Kenyans.
Nearly two years later, however, Mbadi and Wandayi now find
themselves at the centre of growing public frustration over the rising cost of
fuel, with many Kenyans questioning whether the government’s economic policies
are easing or worsening the burden on households and businesses.
Political commentator Joseph Mutua argues that the fuel
crisis represents one of the most difficult challenges Mbadi has faced since
taking over the Treasury docket.
He says the government is increasingly being forced to
strike a delicate balance between maintaining aggressive revenue collection
measures and cushioning citizens from economic hardship.
“With fuel prices affecting transport, food and electricity
costs, Mbadi faces the difficult task of maintaining fiscal discipline, while
at the same time finding room for subsidies or tax relief measures,” Mutua
said.
He noted that opposition leaders and critics of the
government are likely to intensify pressure on the Treasury, especially over
taxes imposed on petroleum products, which many believe are significantly
contributing to high pump prices.
“Any failure to provide a convincing economic solution could
weaken the government’s narrative that the economy is stabilising under
President William Ruto’s administration,” he added.
Mutua observed that Wandayi is equally facing intense
scrutiny because of his direct oversight of the energy sector.
“His ability to explain the causes of the fuel hikes and
outline practical interventions will determine whether Kenyans regain
confidence in the government’s handling of the crisis,” he said.
The analyst pointed out that the situation has been
complicated by global economic pressures, including instability in the Middle
East and fluctuations in international oil prices that have raised the cost of
fuel imports.
Despite these global factors, Mutua said many Kenyans still
expect the Energy ministry to develop practical interventions to protect
consumers from the sharp increases.
“Despite these external factors, many Kenyans will still
expect the Energy ministry to come up with strategies to shield consumers from
excessive pain,” he said.
The fuel issue is also rapidly evolving into a politically
sensitive matter as the country inches closer to the 2027 elections.
Rising fuel prices traditionally trigger public anger
because they directly affect transport costs, food prices, electricity bills
and the overall cost of living. Commuters, traders and farmers are among the
groups hardest hit.
The crisis has further exposed growing divisions within
government ranks, with leaders from the ruling United Democratic Alliance and
members of the broad-based coalition publicly clashing over who should shoulder
responsibility for the crisis.
Gatundu North MP Elijah Kururia recently launched a scathing
attack on Wandayi, accusing him of incompetence in handling the energy docket.
In a social media statement, Kururia described the Energy CS
as a “fake expert” and argued that his stewardship of the ministry was
politically damaging President Ruto and eroding public confidence in
government.
The criticism has been interpreted by political observers as
a sign of growing anxiety within sections of the ruling coalition, who fear the
fuel issue could become a major political liability in the run-up to the next
General Election.
Mbadi, however, has defended the government’s approach,
insisting that measures have already been implemented to cushion Kenyans from
rising fuel prices.
The Treasury CS has also dismissed proposals by Ndindi
Nyoro, arguing that the Kiharu MP was “not an expert” on fuel pricing and
economic management.
Nyoro has nonetheless continued to push for a raft of
measures aimed at lowering pump prices, particularly diesel prices, which
heavily affect transport and production costs.
Among his proposals are reducing the Road Maintenance Levy
by Sh7 per litre, lowering it from Sh25 to Sh18, scrapping VAT on petroleum
products by reducing the current 8 per cent VAT to zero, and reducing importer
and distributor profit margins by about Sh4 per litre.
Nyoro has also proposed the introduction of an additional
Sh5 billion diesel subsidy programme to cushion transporters and manufacturers.
The MP argues that the combined measures could lower diesel
prices by as much as Sh54 per litre and help reduce inflation and the overall
cost of living.
Safina Party politician and city lawyer Willis Otieno
believes the current fuel burden is largely a consequence of the government’s
handling of petroleum products.
“A significant part of the burden comes from layered
taxation, levies and policy decisions that directly increase the final cost
borne by ordinary citizens,” Otieno said.
“That is why public officials, including the CS for Finance
Mbadi, must approach this debate with intellectual honesty instead of reducing
legitimate public concern into political defensiveness.”
Otieno further accused Mbadi and Wandayi of changing their
tone after joining the government.
“When they were on the streets, every increase was an
emergency. Now in office, it is explained away as global market forces. Yet for
ordinary citizens, the reality has never changed; transport costs, food prices
and daily survival all move in one direction: upward,” he stated.
Meanwhile, Kenyans on social media have been revisiting past
statements made by Mbadi and Wandayi when they were in opposition, particularly
comments criticising previous fuel price increases and government economic
policies.
The resurfaced clips and statements have fuelled accusations
of hypocrisy from critics who argue that the two leaders are now defending
policies they once condemned.
One of the widely shared remarks attributed to Wandayi
reads: “Who advises this government? Who are the real advisers in terms of
economics and finance management, leave alone politics that we can deal with
later?”
