By Okong’o Oduya
As Kenyans in other parts of the country are struggling to come to terms with the high fuel prices after the 16% VAT on petroleum products as stipulated by the Energy Regulatory Commission in Kenya (ERC).
The new prices have come biting so hard causing residents in Kenya’s bordering towns of Busia and Malaba to seek for an alternative by crossing the border to obtain the commodity in Uganda at a cheaper price.
The residents say there is no need for them to buy a liter of petrol in Busia at ksh131(1.31 USD) from ksh114 (1.14 USD) while in Uganda it is trading at Ush4080 an equivalent to ksh109 (1.09 USD), with diesel trading at Ush3750 equivalent to ksh102 (1.02 USD) per liter, while in diesel goes at ksh128 (1.28 USD) per liter in Kenya.
According to Michael Gombe a taxi driver in Busia, he doesn’t see the reason why he should continue fueling in Kenya at a high price when he can cross the border and fuel on the other side of the town in Uganda at a friendly price.
He noted that Taxi Drivers Association in town they will not fuel in Kenya until the 16% VAT on fuel is revoked.
“The manner in which the leadership of this country is taking us is worrying. Some of us we will be unable to take care of our families if the situation continues. Fuel is the backbone of everything in this country. If you hike the fuel, you hike the price of everything, unlike the other commodities. Unless the finance minister revokes the order, we will continue buying the fuel in Uganda hence promoting Ugandan economy.” said Michael
The same sentiments were echoed by his fellow driver Stephen Wabwire adding that the increase of fuel prices has affected their business and have been forced to increase charges, that has negatively impacted on their customer’s pocket.
“As a result of fuel increase we have as well as increased our charges from ksh300 (3 USD) to ksh500 (5 USD) town service, which our clients are not happy about it, they are opting to use motorbikes which seems to be cheaper than hiring a taxi, which I know will render some of us jobless,” said Wabwire
Kevin Oduor a cereal businessman in Busia laments on how the fuel increment has affected his business. He states that transporting a 50 kilograms sack from Busia to Kisumu previously was ksh300 but for the last 3 days since the increase of fuel prices he has no option than to part with between ksh500-800 (5-8 USD) to transport a 50kgs sack from Busia to Kisumu.
“I used to transport a ‘gunia la mahindi’ – a 50 kilograms maize bag at 300 shillings but after Rotich decided to put hefty tax on petroleum products, I need like 600 to 800 shillings to transport one bag. It is worse when you need to transport a good number of bags. It is painful. Some of us we may not make it if the situation remains like this,” said Oduor
“If Kenyans right now we are demanding for reduction of the price of different commodities, who are you to increase fuel prices? If Rotich cannot revoke his order, let the president Uhuru Kenyatta intervene and relieve Kenyans from these suffering,” he added
George Otwani the boda-boda operator in Busia town raises his fear adding that business will not normal since his clients are not ready to pay ksh100 from 50bob.
“We charge our customers ksh50 town service but with the increase in petrol, we will be forced to increase fare which will not be received positively. How can you tell a customer to pay 100 shillings to Burumba, Korinda or Alupe? They will not accept that,” he paused
Kennedy Omuga Acacia driver operating from Busia to Kisumu attributes fuel increment to the predicaments they are facing as a sector. They have been forced to raise fare from the usual 300 shillings to 400 shillings from Busia to Kisumu and vice versa.
The shell company in Busia Uganda is reaping big as Boda Boda and taxi operators from Busia prefer fueling in Uganda than Kenya.
Lydia Ajiambo is the manager at the Shell filling station in Uganda. She says due to the increased number of customers from Kenya they have something to smile about.
According to her, for the last three days, they have fueled tracks transiting to Kenya in large numbers for fear of incurring a loss in Kenya as the 16% VAT is at its peak.
“It is unfortunate that the fuel in Kenya is expensive but we are happy. It is an advantage to us. Since the month began we have sold enough compared to our past months. In short, the business is booming,” she said
This comes at a time when most of the residents in Busia and Malaba town cross to Uganda to seek basic commodities such as cereals, milk, sugar, eggs, and fruits not forgetting the beer, for the beer lovers that goes for Sh100 (1 USD) per bottle compared to Ksh200 (2 USD) in Kenya.
Motorists in Nairobi also have planned demonstration on Wednesday to protest the imposition of 16% on all petroleum products while Legislators both in the Senate and Members of Parliament are holding a special sitting over the same issue.
It is yet to be seen if President Uhuru Kenyatta will yield to the pleas and demands of Kenyans.
