Kenyans Smuggle Fuel from Neighboring Countries as Scarcity Continues to Bite

The fuel crisis in Kenya has led to the sneaking in of petroleum products from Uganda, Ethiopia, and Tanzania where the commodity is cheaper triggering a booming business for those living at the border.

Boda Boda operators in Busia and Malaba towns, for instance, have abandoned their passenger transport business to purchase fuel from Uganda, where super petrol is retailing at approximately 109 shillings and diesel 102 shillings a liter compared to Busia where the same sell at 131 and 118 shillings respectively.

Meanwhile, those along the Ethiopian border cross to the country where a liter of petrol is selling at a retail price of 75 shillings whereas in Kenya it sells at 130 shillings.

It was long predicted that the hiked fuel prices would invoke a black market, and border people from Ethiopia and Uganda aren’t the only ones taking advantage of the situation. The price in Kenya doubles that of Somalia and Sudan, where petrol in the two countries goes for 40 shillings and 55 shillings respectively.

Diesel in Sudan retails at 40 shillings and in Somalia, it is sold at 35 shillings a liter. In Tanzania, gasoline is sold for 110 shillings a liter with diesel price standing at 105 shillings.

Back in the 1990s, Kenyan traders would set up black markets in Uganda for fuel trading was highly profitable. Currently, the converse is true. It would seem that the illegal business which was fizzled out almost two decades ago is back to life.

The trend erupted following the controversial 16 percent Vat tax imposed on fuel in the country. The price of petroleum products in the neighboring countries remain consistent as their tax doesn’t extend to fuel.

Scarcity continues to bite as petrol stations in most towns along the border have run dry. Distributors, for the better part of last week, downed their tools to protest against the elevated prices.

Motorists in Malaba and Busia, who are conversant with routes unknown to many are smuggling the product from Uganda to sell it to Kenyan customers. Meanwhile, as they have an easy way out, those with taxi business must go through the painstakingly slow process of custom checks every time they cross the border.

Since the VAT on fuel came into effect, many businesses have been interrupted in a move that the Kenyan government selfishly uses to pay its perpetual debts. Some individuals are wishing the Kibaki regime was back since he (the former president) kept IMF at bay in most of its dealings. Jubilee government has successfully resuscitated what should have remained dead. The question of whether the VAT on fuel will be scrapped off remains as Kenyans await with abated breaths for President Uhuru’s verdict.