President Uhuru on Thursday evening rejected the Finance Bill 2018 which Kenyans had keenly been waiting for.
The 16% VAT on petroleum products was imposed on September 1, resulting into a sharp increase in fuel prices.
The introduction of the charge has seen fuel prices rise to Sh130 per litre for petrol and almost Sh100 for kerosene. The mid-month review by ERC is due on Friday.
The president is expected to address the nation on the VAT question on Friday.
The decision sparked protests among Kenyans who have in various platforms reached out to the president to sign the Finance Bill, 2018 to cushion them from the high costs.
Earlier on, National Assembly Speaker Justin Muturi had been accused of deliberately sitting on the Bill.
The President’s rejection of the Bill now puts to rest the ongoing stalemate over the 16 per cent VAT on fuel. Minority Leader John Mbadi had on Thursday described Mr Muturi’s action as “unfortunate and dishonest”.
The Gwasi legislator said inquiries at the clerk’s office show that the Bill was concluded for forwarding to the President a week ago but it had been lying at Mr Muturi’s office since then.