The court has temporarily stopped the Kenya Revenue Authority from imposing a tax on motor vehicle reimbursement awarded to members of county assemblies.
The conservatory orders were issued on Wednesday by Justice J.K Sergon sitting in Kericho High Court.
The orders will remain effective until May 30 when the case will come up for hearing.
"That conservatory order is granted to restrain the Commissioner, Kenya Revenue Authority from demanding and or executing their decision on imposing of tax based on sections 3 and 5 of the Income Tax on the Members of the County Assembly Motor Vehicle Reimbursement amount arising from gazette notice No. 8791," the judge ruled.
The County Assemblies Forum had moved to court to stop the KRA from imposing the tax on MCAs' car reimbursements backdated to when they started enjoying benefits.
In a gazette notice dated July 27, 2022, the Salaries and Remuneration Commission said members of the county assembly would be entitled to motor vehicle reimbursement based on the distance covered.
"A deputy speaker and Member of County Assembly shall be reimbursed a claimable mileage allowance of one return journey per week from respective county assembly office to respective ward office at the rate of Sh77.35 per kilometre using a car of engine capacity not exceeding 1800cc," SRC said.
KRA, SRC, the Controller of Budget and the Attorney General are listed as respondents in the matter.
