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November 21, 2018

High Court halts 16% VAT on fuel products

The High Court in Bungoma. /JOHN NALIANYA
The High Court in Bungoma. /JOHN NALIANYA

Kenyans got a reprieve on Thursday after the High Court in Bungoma granted temporary orders stopping the levying of 16 per cent VAT on fuel products.

The petitioners represented by lawyer Ken Amondi argued that Treasury Cabinet Secretary Henry Rotich flouted core constitutional principles and values by effecting the fuel tax on September 1

Justice Stephen Riechi has ordered that the matter be mentioned on September 9, in Kisumu.

The petitioners under Sumawe Youth Group argued that the matter was an issue of public interest.

They said it was wrong for the CS to hide under the guise of waiting for the Presidential assent on a matter that Parliament had deliberated. On August 29, MPs voted to shelve the fuel tax until September 1, 2020. 

"The people speak through their representatives who are members of Parliament and the act of the CS is against constitutional principles," argued lawyer Amondi.

The Energy Regulatory Commission and the CS were listed as respondents.

The petitioners further said the powers of spending public finances had been vested to parliament which had spoken through amending the bill.

Read: [VIDEO] Long queues at petrol stations as fuel distributors strike

Also read: Rotich holds crisis meeting with Muturi, Duale on fuel tax

More of this read: The origin of VAT on petroleum products

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