Relief for fuel consumers in Kenya as court stops new tax

Thursday September 6 2018

A petrol station in Kabarnet, Baringo displays

A petrol station in Kabarnet, Baringo displays new fuel prices following the implementation of the 16 per cent tax on petroleum products. PHOTO | CHEBOITE KIGEN | NATION MEDIA GROUP  

By Daily Nation

The High Court in Bungoma, western Kenya on Thursday granted temporary orders stopping the levying of 16 per cent VAT on fuel products.
The petitioners represented by Advocate Ken Amondi argued that the Treasury Cabinet Secretary Henry Rotich had flouted core constitutional principles and values in arriving at the decision which has caused a public outcry.

Justice Stephen Riechi further ordered that the matter be mentioned on September 12, 2018 at the High Court in Kisumu.
The petition was filed by a lobby group from Kisumu on September 3 under a certificate of urgency.
“I can confirm that we have been granted the orders to stop the fuel levy. We will serve the CS Treasury and the Energy Regulatory Commission (ERC) for implementation,” Mr Amondi told Daily Nation on the phone on Thursday.

The additional fuel charges are contained in the Finance Act 2013 and are in line with Kenya’s promise to the International Monetary Fund (IMF) six years ago to do away with tax exemptions as part of a wider plan to grow revenues, reduce budget deficits and ultimately slow down the debt pile-up that has in recent months become a source of national concern.