The government is expected to pay a further Ksh.14 billion to oil marketing companies (OMCs) to cover arrears from the fuel subsidy.
Already, the Ministry says it has paid Ksh.34.2 billion of the arrears owed to the fuel retailers over the course of the fuel shortage crisis in the country.
“We are in receipt of the full outstanding balance that is payable to the OMCs. As of yesterday (Wednesday) we had dispatched upwards of Ksh.34.6 billion since the program started last year and will continue with these disbursements once done with the administrative procedures,” stated Acting Petroleum and Mining Cabinet Secretary Monica Juma.
According to Petroleum Principal Secretary Andrew Kamau, the payments are expected to be booked later on Thursday or Tuesday next week.
“EPRA will announce prices layer today after which we will know of the amount to be paid in subsidy,” he said.
At the same time, PS Kamau has rubbished suggestions by OMCs that the current fuel shortage has been occasioned by delays in the subsidy payments saying the payments cycle has remained unchanged across the subsidy utilization.
“There has been a suggestion of disparity in terms of the payment of the subsidy and the pricing cycle. There is no such thing,” he added.
“The assertion was marketers were experiencing some financial difficulties two weeks ago but we did pay them the very next day. Unfortunately, because we took them at their word, despite indicating that supplies were to be restored, this did not happen. Clearly there was another motive. If that was the issue, we could not be where we are today.”
According to data tabled on the floor of Parliament on Wednesday, the fuel subsidy has accumulated arrears of Ksh.49.2 billion since April 2021 with payments of Ksh.34.6 billion as of April 4.
The arrears to paid cover subsidy amounts in the February 15 to March 14 and March 15 to April 14 pricing cycles