BUNGOMA HIGH COURT ORDERS A STOP TO 16% VAT FUEL TAX HIKE

By Calvin Noche

There is a temporary relief in the country as a High Court issues orders against the 16% fuel tax. The High Court held a sitting in Bungoma issued a temporary order to stop the 16% VAT that was added on fuel purchases.

The New Fuel Prices From One of the Leading Prividers in the Country

Justice Stephen Riechi ordered the issue to be mentioned in the Kisumu High Court next Wednesday, September 12th.

There has been a major turmoil all across the country since the new 16% VAT was applied on fuel in the previous week.

The current petition was filed by a group of youth that claimed Treasury Cabinet Secretary Henry Rotich infringed the constitutional principles and the Bill of rights.

On Monday, September 3rd, motorists across the country showed their frustrations after the high fuel prices. Some motorists in Nakuru held demonstrations around the city.

A few motorists continued to offer their services to the commuters with increased transportation fees, while others protested with the aim of forcing the government to bring down the fuel prices.

Other parts of Kenya, such as Mombasa, was also largely affected by the high fuel prices. Vehicle owners and drivers both showed their frustrations after the government’s announcement. However, some motorists in Busia opted to cross the border and buy fuel in Uganda.

A liter of petrol in Kenya retails at around Sh128 and Sh135, while diesel goes for Sh118 a liter, and Kerosene retails at Sh100. However, the same amount of petrol retails at USh4,080 (Sh110), while diesel sells at USh3,750 (Sh 101) a liter in Uganda. The same fuel that is sold in Uganda is transported from the port in Mombasa.

In Migori, motorists and boda-boda operators are still crossing the Kenya-Tanzania border to buy a liter of petrol at Tsh2,500 (Sh110) and a liter of diesel at Tsh1,850 (Sh97) in Tanzania.

During the High Court ruling in Bungoma, Justice Stephen Riechi ordered that the Energy Regulations Commissions and the Treasury CS should revert the fuel prices to the previous rates {Before September 1st}.

The group of youth that presented the case was led by lawyer Kennedy Amondi, who stated that the fuel cost must immediately go back to the prices they were the previous month.

Therefore, the government is expected to obey the court orders according to the High Court ruling in Bungoma. The High Court in Bungoma has authority over constitutional matters.

Nevertheless, the court in Nairobi had previously declined to make a ruling on the matter that had been filed a few days ago. Activist Okiya Omtatah and COTU representatives had filed a case in the Nairobi Court with the aim of urging the government to reduce the high fuel costs.

The government is yet to respond to the High Court Ruling, and more will be heard on Wednesday, September 12th (when the matter is mentioned in the Kisumu High Court).

While the prices have not been reverted, yet, it gives Kenyans hope that the cost of fuel will go back to how it was in August.