MPs join calls for lower food and fuel prices

MPs on Tuesday blamed the high cost of fuel on corruption in the energy sector, inefficiency in the way fuel was handled and the government fuel regulator.

They demanded that the Ministry of Energy introduce reforms to stop oil companies from acting as importers, distributors and retailers.

Budalang’i MP Ababu Namwamba led the onslaught on the government as he moved to have the House suspend normal business to discuss the fuel prices as a matter of national concern.

He also tabled a petition from the Consumers Federation of Kenya (Cofek) to the House, which led NGOs in protests outside Parliament as MPs made their way to the session.

MPs zeroed in on the National Oil Corporation of Kenya (Nock) and the Energy Regulatory Commission (ERC) and accused them of having failed in their mandate to protect consumers from the high fuel prices.

Mr Namwamba said the government’s lack of willingness to tackle “a cartel of oil marketers” was the primary cause of the high fuel prices.

“I submit that today, Kenyans are paying the price of grand corruption. Until and unless we slay this vampire of corruption, we’ll continue paying its high price,” Mr Namwamba said.

Energy ministry, he said, had ignored recommendations of an inter-ministerial taskforce constituted in 2006 to investigate cartel-like behaviour in oil marketing companies.

Among these proposals, he said, were that the government should not allow the marketers to import, distribute and retail oil products, creating a sort of monopoly.

He said the ministry had also been asked to introduce a Price Stabilisation Fund as well as address inefficiencies in the Kenya Petroleum Refineries Limited, Kenya Pipeline Corporation and Nock.

House Speaker Kenneth Marende will rule on Thursday on the admissibility of documents Mr Namwamba had in soft copy to substantiate his claims of corruption.

Rarieda MP Nicholas Gumbo, who seconded the Motion, said the size of the Cabinet needs to be reduced.

Gichugu MP Martha Karua accused the ERC of incompetence.

“How come the Minister of Energy does not seem to know that the Energy Regulatory Commission is not performing its job? Is it that those who are comfortable are laughing at the poor?” she asked.

She criticised the tax cuts on kerosene and diesel announced by Finance Minister Uhuru Kenyatta on Monday, saying, they resulted in the reduction of prices of kerosene by Sh2 whereas the price had increased by Sh9 last week.

ODM Chief Whip Jakoyo Midiwo said the ERC “is cleaning up the mess created by Nock.”

The firm was earlier this year given the right to import 30 per cent of Kenya’s oil requirements, but is locked in a tussle with other oil marketers, who claim it is selling one such consignment of oil at March prices while it bought it in February.

He was supported by ODM Nominated MP Rachel Shebesh, who claimed corruption was rife at Nock.

Gwasi MP John Mbadi challenged Energy Minister Kiraitu Murungi to resign if he was unable to rein in corruption at the ministry. But Transport Minister Amos Kimunya accused MPs of focusing on the wrong areas rather than concentrating on the real causes of the increase in fuel prices.

Mr Murungi said MPs should have provided solutions to the problem rather than lament and point fingers.

“We cannot run away from the fact that the primary causes of the increase in fuel costs are external factors,” he said.

He cited the increase in the price of crude oil and the depreciation of the Kenya shilling against the dollar.

Molo MP Joseph Kiuna said there was enough food in Rift Valley, but the government had failed to buy it.

Kajiado Central MP Joseph Nkaissery blamed the crisis on indecision in government. “Sooner or later we are going to be a walking nation,” Mr Nkaissery said.

Addressing protesters at Uhuru Park, former Kabete MP Paul Muite accused the government of failing Kenyans.

“As a country, we cannot claim to be sovereign when we keep on begging for food as we have been unable to feed our own people... The government should reduce the price of essential food stuff and ensure fares are also reduced,” he said.

The demonstrators marched through Processional Way, Kenyatta Avenue, Kimathi Street, City Hall and Harambee Avenue with placards.

Cofek secretary-general Stephen Mutoro said the price of a 2kg packet of maize flour should be reduced to Sh45, paraffin to Sh30 a litre and petrol Sh80 a litre.

Additional reports by Lucas Baraza, Benson Nyagesiba, Mike Mwaniki, Dennis Odunga and Mwakera Mwajefa