High pump prices defy State's Sh10b spending on subsidies

The government did not apply fuel stabilisation in the October-September cycle and as a result, pump prices went up by the highest margin ever. [iStockphoto]

The government will have spent about Sh10 billion over the five months to December 14 this year, in cushioning Kenyans from the high cost of fuel.

The move has however failed to prevent pump prices from hitting historical highs, which has hit individuals and industries hard. This is seen in reduced fuel consumption.