Court Issues Second Order Against Ruto's Finance Act

The order dated June 30, 2023, was given by Justice Mugure Thande and comes after the court granted similar orders suspending the Finance Act in response to a petition filed by Busia Senator Okiya Omtatah.

Outside the Milimani Law Courts. /FILE

Omtatah had moved to the High Court to challenge the contentious Act before it was assented into Law by President William Ruto, arguing that the bill which generated uproar across the country is unconstitutional and thus sought the help of the court.

The court also granted Omtatah's request to bar Ruto from enacting the Finance Act 2023 from Saturday, July 1.

Justice Thande ordered the petitioner to serve all parties including Treasury Cabinet Secretary (CS) Njuguna Ndung'u before the end of the day, Friday, June 30, 2023. 

Both matters will be mentioned on Wednesday, July 5 for further directions.

However, moments after the ruling, the Energy and Petroleum Regulatory Authority (EPRA) announced the current fuel prices despite the court order stopping the implementation of the Finance Act 2023.

The Act had raised VAT on petroleum products from 8% to 16% among a raft of other revenue-raising measures through taxes.

Super Petrol thus retails at Ksh195.53 per litre, Diesel Ksh179.67 and Kerosene Ksh173.44 per litre in Nairobi.

"Pursuant to the Finance Act, 2023, VAT on Super Petrol, Diesel & Kerosene has been revised from 8% to 16% effective 1st July 2023. Accordingly, EPRA has recalculated the maximum pump prices that will be in force from 1st to 14th July 2023 taking into account VAT at 16%.

"As a result, the changes in the maximum allowed petroleum pump prices in Nairobi are as follows: Super Petrol, Diesel & Kerosene increase by Ksh13.49, Ksh12.39 and Ksh11.96 per litre respectively," EPRA stated in part.

National Assembly Finance and Planning Committee Chairperson, Kimani Kuria, while speaking to NTV moments after Justice Thande issued the orders, noted that the government would respect the conservatory orders by the court, thus the government would not review fuel prices with regard to the 16 per cent VAT on petroleum products.

"We respect the Judiciary and we expect the court process to take the lead. We are prepared for a court battle," indicated the Molo MP.

"As a committee, we went through all court rulings and we made the decisions based on the previous clauses that were done and we ensured that everything was in order," he added, revealing that they had expected the orders issued in favour of Busia Senator, Okiya Omtatah and other petitioners.