Transport sector is set to be paralyzed on Wednesday in protest of the increased fuel prices.
The Kenyan Motorist Association has called out on Kenyans to park their vehicles on major roads to protest the increased pump prices.
In a new plan, Treasury will implement a 16 per cent VAT on all petroleum products come September 1st thus increasing the fuel prices by Ksh 17 per litre.
According to Kenya Motorist Association chairman Peter Murima, the Energy Regulatory Commission has been hiking fuel prices since the election and at any time they want to increase prices, they usually go for fuel.
In Nairobi alone the price for petrol will shoot to Ksh 131.93, diesel Ksh 119.38 and kerosene to ksh 98.54.
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The VAT implementation comes into action following part of September 2013 by International Monetary Fund (IMF) but it was suspended for three years and extended for another two years in 2016. It’s due to the delay that Treasury has vowed to implement the prices this coming September.
KMA chairman Mr. Peter Murima has called for drivers to dump their vehicles as early as 7:30 AM.
The increase of fuel prices will see increased inflation as there will be increased cost of production and manufacturing of commodities by both large and small scale companies.
Transport charges will increase together with cost of goods and services meant for household consumption.
So as to reduce the increased cost, companies may have to lay off some of its workers and making it difficult for equal distribution of wealth across the country.
Increased inflation may cause citizens to lose faith in their currency and make it hard for a country to attain its GDP growth.