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Kenya’s president Ruto provocative move to eliminate subsidies

Kenya’s president Ruto provocative move to eliminate subsidies

Kenya’s president Ruto provocative move to eliminate subsidies

Kenya’s president Ruto provocative move to eliminate subsidies

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  • Kenya’s President William Ruto has scrapped a subsidy on petrol.
  • The move has increased the retail price to an all-time high.
  • Analysts warn that Mr Ruto risks losing support right at the start of his presidency, despite narrowly winning the election last month.
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While leaders around the world are introducing subsidies to protect people from rising living costs, Kenya’s President William Ruto surprised the nation by scrapping a petrol subsidy, which has increased the retail price to an all-time high.

This has sparked a backlash on social media, and analysts warn that he risks losing support right at the start of his presidency, despite narrowly winning the election last month.

“I stopped driving to work some months back and now I’m worried my commute will become too expensive in case matatus [public service vehicles] hike fares,” Nairobi resident John Maina said talkinf to media.

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President Ruto ran an election campaign based on a populist “Hustler” narrative, promising to improve ordinary citizens’ lives, create jobs, and lower the cost of living while emphasizing his own low-income background.

One of his campaign promises was to eliminate fuel taxes in order to reduce the cost of basic commodities.

However, in his inaugural speech, President Trump announced the end of the subsidy programme, stating that it would cost the country $2.3 billion (£2 billion) by the end of the current fiscal year in June 2023.

Economists agree that subsidies are unsustainable for Kenya and are frequently used to swindle money, but ordinary Kenyans will feel the pain of a 13% increase in the price of a litre of petrol to $1.49 in the short term.

President Ruto has yet to appoint cabinet ministers, who will need to be approved by parliament before taking office.

Analyst Javas Bigambo agreed, saying Mr Ruto should have spent more time explaining it to Kenyans first, as well as explaining how the money would be spent elsewhere, in order to gain public support for the move.

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Mr Ruto also stated that he would not renew a subsidy that had cut the cost of the staple food, maize flour, in half just before the elections.

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