High Court's Decision on Stopping 16% Fuel Tax

The High Court has declined to issue orders stopping the implementation of 16 percent fuel tax.

Justice Chacha Mwita directed the issue to be served to the respondents who were expected to appear before the court for the inter-party hearing.

The court has also certified the matter as urgent after two petitions that were filed by the Central Organisation of Trade Unions (COTU) on Tuesday and activist Okiya Omtatah on Monday.

The two parties challenged the directive by Treasury Cabinet Secretary Henry Rotich stating it was unconstitutional.

COTU argued if the law was allowed to stand Kenyans will not recover any costs incurred adding that the 16 percent imposed on petroleum products will likely increase the prices of commodities.

Omtata, in the petition filed at Milimani Law Courts on Monday under a certificate of urgency, argued that the increased levy on fuel was unconstitutional, invalid and unfair.

He further stated that the levy has negative impacts on the cost of essential goods and commodities in the country.

Those named in the petition as respondents include Treasury Cabinet Secretary Henry Rotich, Kenya Revenue Authority (KRA), Energy Regulatory Commission (ERC), Attorney General as well as the National Assembly.

On Saturday the Kenya Revenue Authority announced new taxes on all petroleum products effective September 1 despite protests.

KRA Commissioner- General John Njiraini, in a statement, informed Kenyans, oil marketers, resellers and retailers that Value Added Tax (VAT) will be charged on all petroleum products at a rate of 16 per cent on all transactions with effect from September 1.