Uhuru Kenyatta Receives Bill From Parliament to Suspended New 16% Fuel Tax

  • President Uhuru Kenyatta signing a document Daily Nation
  • The Speaker of the National Assembly Justin Muturi on Thursday presented the Financial Bill passed by Parliament suspending the VAT on fuel for another two years to President Uhuru Kenyatta.

    The President will either assent to it or send it back to Parliament.

    This comes after Parliament passed the bill which will suspend the implementation of the new 16 per cent tax on all fuel products to two more years.

    Through a press release, KRA moved to implement the tax after the Treasury CS disregarded a motion passed by Parliament to suspend the tax.

    The directive by the Treasury CS Henry Rotich caused an increase in fuel prices and fare charges.

    The move by the National Assembly was meant to cushion Kenyans against the high cost of living.

    Rotich explained that the implementation aims to help improve tax collection efficiency.

    He further added that it will supplement tax revenue sources considering the huge consumption of petroleum products in the economy.

    Activist Okiya Omtatah had moved to court to challenge the 16 percent Value Added Tax on petroleum products that took effect on September 1.

    Through the petition, he stated that the move, which was affirmed by the Treasury CS, was invalid, unconstitutional and unfair.

    A similar case was filed by COTU through which the Secretary General Francis Atwoli indicated that the tax will increase the cost of living.

    ODM party leader Raila Odinga assured Kenyans that the Head of State will reverse the new tax in order to ease the high cost of living experienced by the citizens.

    Minority leader of the National Assembly John Mbadi addresses the press

    Minority Leader John Mbadi echoed his party leaders remarks calling the move unfair after parliament passed a motion to move it to 2020.