DP party blames government for rising cost of living

Justin Muturi leader Democratic Party . [File, Standard]

The Democratic Party of Kenya has intensified its criticism of the Kenya Kwanza administration, blaming what it describes as poor fiscal decisions and excessive  taxation for the growing economic hardship facing millions of Kenyans.

In a press statement issued by party leader Justin Muturi, the party argued that the government should stop attributing the high cost of fuel and basic commodities solely to global instability in the Middle East and disruptions along the Strait of Hormuz.

The party maintained that while international oil prices may influence local fuel costs, Kenya’s worsening economic situation is largely the result of domestic financial policies.

The statement accused the government of placing a heavy burden on citizens through increased taxes, opaque borrowing methods, and spending policies that continue to strain households already struggling with the high cost of living.

According to the party, the fuel levy charged on motorists has evolved beyond its original purpose of maintaining roads and is now being used to secure long-term financial obligations through infrastructure financing deals.

The Democratic Party claimed that Sh25 per litre is currently being paid under the Road Maintenance Levy Fund, while the government has committed Sh12 per litre through Special Purpose Vehicle (SPV) arrangements and infrastructure bonds, raising nearly Sh300 billion upfront.

The party claimed that the arrangement effectively mortgages future public revenue while concealing the country’s true debt exposure from the public.

It further expressed concern over the continued securitisation of fuel levy revenues, which it claimed raises constitutional and accountability concerns.

Road agencies, including the Kenya Rural Roads Authority and Kenya Urban Roads Authority, came under sharp criticism, with the party questioning the need for large allocations to the agencies at a time when many Kenyans are struggling to afford food, transport, and other basic necessities.

The statement also argued that county governments and NG-CDF allocations are already capable of supporting many local infrastructure projects, making some expenditures by national road agencies unnecessary.

The opposition party accused the government of failing to adopt stricter austerity measures similar to those introduced during the COVID-19 period, saying the current economic climate requires urgent interventions to cushion vulnerable households.

Among the proposals put forward were the suspension and review of all fuel levy securitisation agreements, public disclosure of infrastructure bond arrangements, and a reduction in spending on road agencies until the economy stabilises.

The party also called for an independent audit into pending road contracts and contractor payments, while pushing for increased government investment in food security, healthcare, job creation, and direct economic support for struggling families.