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Painful, but removal of subsidies right way to go

Living
 President William Ruto with Central Bank of Kenya Governor Patrick Njoroge after a meeting in 2019. [DPPS]

President William Ruto's decision to do away with various subsidies mooted under the previous Jubilee administration is the right way to go.

Judging from their efficacy or lack thereof, they were not based on compelling rationale. They are not sustainable in a country grappling with public debt incurred at usurious rates. Neither debt nor subsidies seem to have had the intended benefits.

Some of these subsidies have become instruments of corruption. Take for instance the petroleum subsidy. Initially set up under the Petroleum Development Levy Fund Act of 1991, its purposes were twofold; to protect consumers by stabilizing fuel prices whenever there were surges in global oil demand and for infrastructure upgrades in the petroleum sector.

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