Feature: Rising fuel prices cause financial distress to Kenyans

Source: Xinhua| 2021-04-20 22:18:11|Editor: huaxia
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NAIROBI April 20 (Xinhua) -- Kenya's Benson Odhiambo is perched on his motorbike narrating a day's incident to his colleagues as they laugh raucously in response.

Their animated conversation may give off the impression of a happy bunch, but nothing could be further from the truth.

The group of five motorbike riders including Odhiambo plies the Eastland's route, southeast of the Kenyan capital of Nairobi.

Often, they find themselves engaging in such banter to keep their minds from veering to thoughts of despair.

With each one of them experiencing some hardship caused by the prevailing economic status, the latest rise in retail fuel prices is further threatening to handicap their abilities to meet their needs.

"We talk a lot because there are no customers to ferry, were there clients you would not find us here. At the moment, we are charging 100 shillings (about 0.92 U.S. dollars) for distances we would charge half fare as a result of the fuel hike. Passengers are not happy but surely what are we to do?" Odhiambo asked.

His sentiments are shared by many other Kenyans staring at a bleak future with the cost of living soaring by the day.

Last month's fuel review saw the price of fuel jump to 1.13 dollars from 1.06 dollars in February for a liter of petrol, while diesel is currently retailing at 0.99 dollars from 0.94 dollars in Nairobi.

The price of kerosene, a preferred fuel for many low-income households retails at 0.90 dollars, a 0.05 dollars increase from what it was retailing in February.

An increase in fuel pump prices has a significant impact on inflation in an economy which depends heavily on diesel for transport, power generation and agriculture, while kerosene is used in many households for lighting and cooking.

Last month's review saw the price of fuel hit a nine-year high with the fuel regulatory agency, Energy Petroleum Regulatory Authority (EPRA), citing increased crude oil prices as a result of resumed economic activities internationally.

Although April's review did not see an increase in pump prices despite the rising landing cost for petroleum products, Kenyans expected the regulatory body to at least revise the cost downwards.

Pundits believe the prices were maintained after Kenyans protested against an increase.

Odhiambo's colleague, Joel Oluoch, a young man who finds himself descending into adulthood with a loaned motorbike and eroded dreams, told Xinhua Monday that the economy is undermining his prospects.

"The government should subsidize goods, cut its own expenses, and abandon some projects it is undertaking if only to cushion us. I graduated five years ago but I have nothing to show for it," said Oluoch.

Oluoch studied electrical works at a vocational school in Thika town, 40 km east of Nairobi.

After completing school he relocated to the city to secure a job but his pursuit continues to be met by numerous setbacks.

"Around 2017, I was conned and I paid the price with my first job. I have not had any formal employment since then. When COVID-19 struck I retreated to the village but the village is harsher to you when you do not have money. So I came back and bought a bike with loaned money," said Oluoch. "Ever since I made the purchase I am yet to make any payment towards servicing the loan because what I get only suffices my immediate needs. As it stands any price increment on goods no matter how small will drive me to poverty."

The general feeling among the public is that the levies and taxes which take the lion's share of pricing are to be blamed for the overall high cost.

Local media reported that Kenyan motorists living near the border towns of Tanzania and Uganda are crossing into the two neighboring countries to acquire the commodity since Kenya's pump prices are the highest in the region.

Karanja Duncan who operates a water vending and purification enterprise in Nairobi said the cost of production is bound to rise in response to the hike in fuel prices.

"We anticipate a slight increase in production because when our purification machines run on, the transportation cost is already up so definitely, the cost will be transferred onto the consumers," said Duncan. Enditem

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