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Treasury to scrap fuel subsidy in next two months, IMF says

Fashion and Beauty
 Attendant manning a kerosene pump at a filling station in Nyeri. [John Gathua, Standard]

The government plans to end fuel subsidies by year-end, which could see motorists pay higher prices for a litre of super petrol.

The International Monetary Fund (IMF) said the National Treasury has committed to doing away with the subsidy by October.

The IMF, in a new report, noted that retaining the subsidy would continue to be a costly affair for the government, which would spend Sh119 billion in the current financial year. This is Sh19 billion more than what it had planned to spend.

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