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Kenya raises fuel prices despite court order delaying the hike

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Kenya’s energy regulator has increased fuel prices starting Saturday, July 1 after President William Ruto signed the controversial Finance Bill 2023 into law.

Kenya’s finance act 2023 raised the valued added tax VAT on petrol from 8% to 16% prompting the upward review of petrol prices.

Under the new price regime, a litre of petrol in the capital Nairobi, retailing at Ksh182.04 ($1.29) before July 1, will now cost Ksh195.53 ($1.39).

A litre of diesel, on the other hand, has increased from Ksh167.28 ($1.19) to Ksh179.67 ($1.28). An equivalent amount of kerosene will cost Ksh173.44 ($1.23) from the current price of Ksh161.48 ($1.15).

“Pursuant to the Finance Act 2023, Value Added Tax (VAT) on super petrol, diesel and kerosene has been revised from 8% to 16% effective July 1, 2023,” the Energy and Petroleum Regulatory Authority (EPRA) said in a statement on Friday.

The new prices are expected to run between July 1 and July 14, when a fresh review of prices will be communicated.

EPRA’s move to introduce new prices come on the back of a court order suspending the implementation of the Finance Act 2023.

A Kenyan senator, Okiya Omtatah, had gone to court to challenge the Finance Act 2023, which introduced new or higher taxes.

Omtatah, who represents the County of Busia in Western Kenya, argues the introduction of the new taxes was in breach of the constitution.

Judge Mugure Thande certified Omtatah’s petition as urgent, and suspended the implementation of the new law until the legislator’s case is heard and determined.