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Ruto Government Targets Fuel and Electricity Bills to Raise $18.7 Billion for Energy Projects

The Kenyan government has unveiled a proposal to introduce new levies on fuel and electricity to finance a massive $18.7 billion Consolidated Energy Fund, sparking widespread public outrage over what many see as another burden on already overtaxed citizens.

According to the proposal, the levy — set to begin in 2026 and run through 2030 — will pool funds for major infrastructure projects including dams, power plants, and renewable energy developments. The initiative aims to consolidate existing energy surcharges while introducing fresh deductions from petroleum products and electricity bills, part of the government’s long-term plan to address power shortages and accelerate industrialization.

But Kenyans are not buying it. The plan has drawn sharp criticism online, with many expressing anger over rising living costs and the government’s increasing reliance on new taxes.

Jehovah, do these guys understand the problem they’ve continually created because of this over-taxation issue?” one X user lamented. Another quipped, “Anytime I see ‘fund’ and ‘development’, I just see cronies getting enriched. It stopped being about Kenya but more about self.

A third user summed up the mood bluntly: “Taxing us to prosperity ain’t it. Ain’t going to work.

Economic analysts warn that while the Energy Fund could help finance critical projects, its success hinges on transparency and efficient management — two areas where Kenyans have grown increasingly skeptical. With public trust in government spending at a low, the proposed levy faces mounting opposition even before it reaches Parliament.

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