COURT TEMPORARILY BLOCKS SECOUNDARY FUEL PRICE IN KENYA

The High Court of Kenya has issued temporary conservatory orders blocking the Kenya Revenue Authority (KRA) from adjusting excise duty rates for petroleum products this coming Friday which would have raised fuel prices again.

The temporary injunction issued by High Court Judge Justice James Makau is part of prayers sought by two petitioners, Isaiah Odando and Wilson Yata who moved to the court last week, challenging the recent fuel price hike.

Among the orders sought was the quashing of the decision by the Commissioner General of KRA to adjust excise duty rates for petroleum products subject to the approval of the National Treasury Cabinet Secretary.

KRA was prepared to implement the inflation adjustment to the rate of excise duty as per tradition every October 1 and had issued notice on the same on August 10, 2021.

Besides fuel products, other excisable goods which would attract higher prices from the inflation adjustment at 4.97 per cent include beer, wines & spirits, food supplements, imported motor vehicles, bottled water and cigarettes.

Further, telephone and mobile internet services which are covered under excisable services would attract greater costs on the adjustment.

The petitioners have been challenging the lack of public participation in the excise duty rate adjustment.

Based on the present rate of excise duty by nominal terms, Citizen Digital calculates the secondary fuel price hike under the inflation adjustment at Ksh.1.09 per litre for petrol and 57 cents for diesel and kerosene respectively.

The adjustment of the excise duty rates for inflation is meant to cover the tax man from revenue losses resulting from inflation- the decrease value of local currency/ the shilling over time.