@murchr

Seems diesel is the 'better' fuel as far as 'energy' is concerned
http://www.fool.com/inve...r-fuel-and-vehicle.aspx

Recent advances in low-emission engines despite the VW crisis should make diesel more palatable going forward. Maintenance is key for diesel engines, the matatus belching black smoke are improperly maintained. In many "Western" [eg USA, UK] countries, all vehicles over a certain age have to go for emission testing. I doubt 95% of Kenyan matatus of 4+ years can pass this test!

"Consumers may think that because of the improved fuel efficiency a diesel provides, it's a better choice for the environment. That's not entirely true: diesel vehicles produce dirty emissions, and our nation's more strict emissions regulations are among the reasons the vehicles aren't as common in the U.S. as they are in Europe. While today's diesel cars are much cleaner than in decades past, some of the emissions include carcinogens, soot, and nitrous oxide -- if you drive significantly more miles in the city and believe in taking care of the environment, a diesel may not be for you.

One pro for diesel engines is that they don't use spark plugs or distributors, which means there is no need for ignition tune-ups. On the flip side, diesels need to be regularly maintained or they can require extensive repairs, and diesel mechanics work at a much more expensive rate."

"Ultimately, if you're driving between 7,500 and 10,000 miles annually it'll be difficult to save enough on fuel costs to justify a diesel purchase. If you drive significantly more miles than average, have a lopsided amount of miles driven on the highway rather than in the city, or are looking into a vehicle that requires premium gasoline, a diesel option is certainly a good one to consider further."

No wonder diesel lorries and pick-ups are preferred coz of the significant mileage they travel in a year. Nairobi-Mombasa is 300 miles. One return trip a week = 50 x 300 x 2 = 30,000 miles.

Systemic malaise is the culprit here and judging by the budget summary presented, things will move from bad to worse. Treasury is still powering through with an expansionary budget(elections in mind) on the back of dwindling revenue collections. There is a lot less wriggle room for increasing taxes and it almost always ends up being counterproductive in a downturn. That leaves debt(especially domestic) to do the heavy lifting. KES permitting, even a massive rate cut won't do the trick this time.