Kenyans are eagerly waiting to see the outcome of the fuel price review on Friday after the High Court suspended all taxation contained in the Finance Act, 2023.
The court decision effectively barred Energy and Petroleum Regulatory Authority (Epra) from doubling Value Added Tax on fuel to 16 per cent.
Epra will announce the new prices that will be in force until August 14.
Prices of fuel rose to Sh195.53 and Sh179.67 per litre of super and diesel respectively in Nairobi from July 1, during the last review.
President William Ruto’s taxation plans have hit a snag after the High Court indefinitely extended a previous suspension on the Finance Act 2023.
In May 2023, the Kenyan Government proposed a number of amendments to the Finance Bill 2023.
Busia Senator Okiya Omtata who is behind the petition said the law is unconstitutional adding that its implementation would subject Kenyas to great suffering.
The High Court suspended the Finance Act 2023 on June 30, a day after it was scheduled to come into force amid uproar over tax proposals including the doubling of VAT on fuel.
Epra, however, proceeded to effect an eight per cent increment in prices of petrol, diesel, and kerosene, adjusting the VAT rate from 8 per cent to 16 per cent.
Ruto’s government pushed the law through parliament despite stiff opposition, saying extra revenue measures were needed to help deal with growing debt repayments and fund job-creating initiatives.
