President Uhuru Kenyatta on Thursday rejected the Finance Bill 2018, sending it back to Parliament.
It means the 16 per cent Value Added Tax (VAT) on all petroleum products stays as it is.
A special sitting of the National Assembly has been called by the Speaker for Tuesday, 18th September.
The bill was presented to President Kenyatta by Speaker Justin Muturi on Thursday, 13/09/2018.
All eyes were on the President due to the hiked fares and increased costs of basic goods that resulted from enforcement of the fuel levy.
Parliament recently voted to suspend implementation of the VAT until September 2020.
National Assembly Majority leader Aden Duale accused his colleagues in the house of laziness for suspending implementation of the VAT multiple times since 2013.
He advised them to find ways to review the bill, acknowledging the pain felt by Kenyans over the levy.
Cases had been filed in court by Activist Okiya Omtatah and the Central Organisation of Trade Unions (COTU) seeking to stop implementation of the tax which they termed unconstitutional and unjust.
ODM party leader Raila Odinga had assured Kenyans that President Kenyatta would reverse the tax to help ease the high cost of living.
