He cautioned that stern action will also be taken against oil marketers who sell the subsidised fuel outside the country.
Addressing Kenyans during this year’s Labour Day celebrations at the Nyayo National stadium yesterday, the Head of State said the country's fuel subsidy programme had ensured that Kenya maintained among the lowest pump prices in the world.
The President assured Kenyans that the Government has taken sustainable measures to cushion the vulnerable, including the workers and farmers on the cost of inputs as the global rising cost of living takes a toll on the public.
Citing the cost of fuel as an example, President Kenyatta said the Government has subsidised prices of petrol, diesel and kerosene making them the lowest in the region.
He pointed out that had the Government not protected consumers against the global increase in fuel prices, petrol price would have been approximately Sh173 per litre.
“But to cushion our people, the Government has had to pay Sh29 per litre as a subsidy. We have similarly subsidised diesel and kerosene. Currently, our diesel pump price is Sh125.5 a litre; the lowest price of diesel in our region and beyond secured by the government subsidy of Sh40.2 per litre,” he said.
The president asked the private sector, as key partners of the state in the economic development journey, to make re-adjustments that secure the elusive balance between profitability and sustaining the wellness of their labour force.
The President also pointed out that the various economic stimulus packages rolled out by his administration over the last two years have helped Kenyan families to cope with the challenges arising from shrinking opportunities as a result of the Covid-19 pandemic.
“Unlike the private sector that declared redundancies that led to retrenchments, the public sector maintained its work force at pre-covid levels,” the President said.
He encouraged workers to embrace positive energy to continue powering the country’s development by building, believing and being champions of the Kenyan Dream.
President Kenyatta commended groups like the Jua Kali artisans on Ngong Road, Kamukunji and Kariobangi who came together to form a company worth Sh250 million.
He also cited the Government’s Kazi Mtaani initiative that benefited over 500,000 young people as examples of positive energy.
“From the Kazi Mtaani initiative, 1,266 youth groups were organically formed. Of these groups, 1,025 have benefited from commercial loans and our affirmative action funds,” the President said.
The Head of State also appreciated Kenyan workers in the diaspora for remitting approximately Sh 375 billion every year.
Responding to Central Organization of Trade Unions (Cotu) Secretary General Francis Atwoli’s request, President Kenyatta directed Labour CS Simon Chelgui to ensure the person picked by workers to represent them at National Social Security Fund (NSSF) board is gazetted.
He also took the opportunity to congratulate former Togo Prime Minister Gilbert Houngbo for being elected as the first African Director General of the International Labour Organization.
Speaking at the event, CS Chelgui thanked President Kenyatta for his leadership which ensured that workers and employees were protected during Covid-19 pandemic.
“Your Excellency, the programmes that you laid down including the reduction of Pay As You Earn (PAYE), the reduction of Value Added Tax (VAT) and payment of stipend to those who lost jobs went a long way in protecting the Kenyan people and workers,” CS Chegui said.
He also pointed out that Kenyan workers have been at the forefront in supporting the implementation of the Government’s Big 4 Agenda.
Mr Atwoli commended the President and his government for supporting the Kenyan worker especially by creating a conducive environment for the manufacturing sector to thrive despite challenges brought by the Covid-19 pandemic.
Federation of Kenya Employers Executive Director Jacqueline Mugo expressed gratitude to all the stakeholders in the labour movement for working together as partners to promote the interests of the Kenyan workers.
Nairobi Governor Anne Kananu, Woman Rep Esther Passaris, National Assembly Majority whip Emmanuel Wangwe, ODM Secretary General Edwin Sifuna, Ben Ombima and a host of other leaders attended the ceremony.
