President Uhuru Kenyatta has proposed a 50 per cent drop to controversial 16 per cent VAT on petroleum products, hours after rejecting Finance Bill.
After major outcry due to escalating fuel prices, Uhuru however refused to back down on scrapping the new taxation as proposed by parliament.
In his Friday afternoon address to the nation, Uhuru insisted that he puts interest of the people first.
"I have consulted widely following your outcry. Our aim is not to punish the poor.
"To be fair, in my memorandum to parliament, I've proposed a drop of 50 per cent in the proposed VAT on petroleum products," he said.
Should parliament on Tuesday support his suggestion, the price of Petrol will reduce from ShSh127 to around Sh118.
The president defended his adminstration on spending, seemingly blaming bloated wage bill precipitated by dispensation of the new constitution.
He also insisted that to carter for the other 8 per cent, he will drastically reduce expenses in other sectors.
"This therefore means, we shall reduce spending in other sectors where the return is not favourable."
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