Fuel prices are likely to skyrocket after the International Monetary Fund (IMF) set a fresh loan condition requiring Kenya to drop the fuel subsidy programme by October.
The multilateral lender has inserted the removal of the subsidy under the 38-month budget support scheme, in the list of reforms attached to a $2.34 billion loan package.
Read Also: IMF Approves $235.6 Million for Kenya’s Budget Support
Kenya has since April last year spent an average of KSh7.65 billion monthly to subsidise diesel, super and kerosene.
The Energy and Petroleum Regulatory Authority (EPRA) says that without the subsidy, petrol prices would have jumped to kSh209.70 per litre from 15th July, while diesel would be KSh193.70 in Nairobi.
As Business Daily reports, the World Bank and the IMF have gained a bigger say in government policy after Kenya turned to the multilateral institutions for concessional loans.
See Also:
