Court stops KRA from hiking taxes on petroleum products

Nairobi High Court has issued an order barring the Commissioner-General Kenya Revenue Authority (KRA) from adjusting excise duty rates for petroleum products.

Justice James Makau ruled that increasing further fuel prices will subject Kenyans to miseries.

Kenyans are currently struggling with the high cost of living occasioned by the Covid-19 pandemic and high taxation.

"I find the application meets the threshold for interim orders. The petitioners have established they have a prima facie case with a likelihood of success," said Justice Makau.

In a notice on August 10, KRA commissioner-general Mburu announced rates on excise duty will be adjusted using the average inflation rate for the 2020-21 financial year of 4.97 percent.

The changes were to take effect on October 1, pending approval from the Ministry of Finance.

Under the umbrella of the UFANISI Centre, a group of Korogocho teenagers went to court to protest the proposed changes.

They claimed the KRA and the Energy and Petroleum Regulatory Authority (EPRA) adjusted the excise duty rates without consulting the public members.

If the new prices are implemented, a litre of petrol will cost Ksh1.09 more, while diesel and kerosene will cost Ksh0.566 more each.

The price of a packet of cigarettes will go up by Ksh3.20 due to an increase in excise tax, while the duty on bottled water will go up from Ksh3.31 to Ksh3.47 per litre.

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