Fuel Hikes Up Despite Court Order Against Finance Act

Despite a court ruling that temporarily blocked the implementation of the Finance Act 2023 in a dispute brought by activists and a Senator, the government has revised fuel prices upward.

According to the revision, which accounts for an 8% VAT hike, petrol would be sold for Sh195.5 per liter in Nairobi and the majority of the rest of the country, while diesel will cost Sh179.8.

The Energy and Petroleum Regulation Authority (EPRA), hours after the High Court imposed an interim injunction, made the announcement late on Friday.

Okiya Omtatah, Busia Senator, and six other activists submitted the petition.

Justice Mugure Thande issued conservatory orders on Friday, and the State was required to respond by Tuesday, July 4.

The injunction effectively prevents the government from enforcing any new Act taxes, including the 8% VAT increase on petrol that is scheduled to go into effect on Saturday.

Following the National Assembly’s adoption of his tax measures despite opposition from the Opposition Azimio coalition and civil society, President William Ruto signed the Bill on Monday.

The leader of Azimio, Raila Odinga, has already called for rallies against the new Act beginning on July 7. He accuses President William Ruto of being insensitive to Kenyans’ problems.

“The president does not listen to Kenyans. He does not care and that is why we must go to the streets because that is the only language he understands,” Raila told a rally in Kamukunji grounds on Tuesday.

In the application before the court, petitioners contested the passage of twenty-two sections of the Act “which were not in the Bill but were introduced on the floor of the National Assembly.”

They also challenged the addition of 40 other provisions, stating that the Senate’s approval of the aforementioned tax proposals was essential.

The petitioners also criticized the inadequate level of public input in the legislative process.