The High Court has declined to vary orders by the Court of Appeal allowing the implementation of the Finance Act 2023.
The three-judge bench consisting of David Majanja, Lawrence Mugambi and Christine Meoli stated that they have no powers to entertain the applications filed by Law Society of Kenya (LSK) and Kenya Human Rights Commission (KHRC) as the Court of Appeal had already issued an order unfreezing the Finance Act, 2023.
In the meantime, the court has summoned the Energy and Petroleum Regulatory Authority (EPRA) Director General Daniel Kiptoo to show cause why he should not be held in contempt for disobeying the order on the Finance Act 2023.
According to the petitioner Okiya Omtatah, Kiptoo went on to increase petroleum prices by 8 percent when the court had issued an order on July 10 barring any increment.
The government reviewed fuel prices upwards despite a court order that temporarily halted the implementation of the Finance Act 2023 in a case filed by activists and a Senator.
The revision factoring an 8 per cent VAT increase means that petrol will retail at Sh195.5 in Nairobi and most parts of the country while Diesel will sell at Sh179.8 per litre.
The announcement was made by the Energy and Petroleum Regulation Authority (EPRA), hours after the High Court issued a temporary injunction.
The petition was filed by Busia Senator Okiya Omtatah and six other activists.
In conservatory orders issued by Justice Mugure Thande on Friday, the State was directed to file a response by Tuesday, July 4.
The orders effectively stop the government from levying any taxes under the new Act, including the 8 percent VAT increment on fuel set to take effect Saturday.
President William Ruto signed the Bill after the National Assembly adopted his tax proposals despite concerns from civil society and the Opposition Azimio coalition.
