The government has projected callous defiance against court order after the Energy and Petroleum Regulatory Authority (EPRA) announced the latest in maximum petroleum pump prices from tomorrow, July 1, 2023 despite a High Court Order being in force barring implementation of the controversial Finance Act 2023.
EPRA headed by Daniel Kiptoo whom the Auditor General said is in office illegally and has facing a law suit in the High Court over his validity to continue being in office reviewed fuel prices upwards despite a court order that temporarily halted the implementation of the Finance Act 2023 in a case filed by Busia Senator cum human rights crusader Okiya Omtatah.
The revision factoring an 8 per cent VAT increase means that petrol will retail at Sh195.5 in Nairobi and most parts of the country while Diesel will sell at Sh179.8 per litre.
The announcement was made late Friday by the Energy and Petroleum Regulation Authority (EPRA), hours after the High Court issued a temporary injunction.
The petition was filed by Omtatah and six other activists.
In conservatory orders issued by Justice Mugure Thande on Friday, the State was directed to file a response by Tuesday, July 4.
The orders effectively stop the government from levying any taxes under the new Act, including the 8 percent VAT increment on fuel set to take effect Saturday.
President William Ruto signed the Bill on Monday after the National Assembly adopted his tax proposals despite concerns from civil society and the Opposition Azimio coalition.
The regulator said the review follows the passing into law the Finance Bill 2023, and subsequent signing into law by president William Ruto on 26 June, introducing 16 per cent VAT on petroleum products.
“Accordingly, we will on June 30 release the reviewed petroleum prices in compliance with finance bill 2023.” EPRA said in a statement.
The new law increases tax on petrol, diesel, and kerosene from eight per cent to 16 per cent in a move to finance Kenya Kwanza administration’s Sh3.6 trillion 2023/2024 budget.
The new tax kicked off a fiery debate from Kenyans of all walks of life and across the political divide with opponents terming it a bad move likely to burden citizens currently grappling with the high cost of living.
Opposition leader Raila Odinga this week called on Kenyans to boycott paying the new taxes to the government to protest the signing into law of the Finance Bill, terming it a betrayal claiming by assenting to it, president Ruto had ignored the plight of the people of Kenya.
However, proponents of the new law argue on its importance in spurring the economy and in helping address the runaway public debt, high cost of living and high rate of unemployment.
Likening the current economic status of the country to a company approaching insolvency, Vice Chairperson Departmental Committee on Finance and National Planning, Benjamin Langat told the House that Kenya has no choice but to raise revenue to become self-reliant.
“Kenya has two choices; to either close down or inject more capital from the shareholders. Kenyans are the shareholders and they have to endure some little pain as we seek to enhance our revenue collection to meet our national obligations and address the competing national priorities.” Langat is quoted as saying.
During the latest fuel prices review, the Regulator adjusted upwards prices of Kerosene by Sh0.35. Super Petrol retails at Sh182.04 per litre in Nairobi while Kerosene and Diesel retail at Sh161.48 per litre and Sh167.28 per litre in the capital city.
In Mombasa, Super Petrol, Diesel and Kerosene retail at Sh179.20 per litre, Sh164.45 per litre and Sh158.65 per litre respectively. In Kisumu, Super Petrol, Diesel and Kerosene retail at Sh181.87 per litre, Sh167.49 per litre and Sh161.70 per litre respectively.