President William Ruto’s allies on Monday, July 17, came to the defense of the Head of State amid fierce criticism regarding the recently released fuel prices.
The prices were calculated based on the 16% Value Added Tax (VAT) on fuel, which is one of the Finance Act, 2023 provisions that have since been suspended by the High Court.
Speaking during an interview on Citizen TV, Belgut Member of Parliament Nelson Koech explained that Ruto was yet to intervene owing to the ongoing court case.
While making his point, Koech referenced the contempt of court charges that Energy and Petroleum Regulatory Authority (EPRA) Managing Director Daniel Kiptoo is facing over the June 30 fuel prices review.
The legislator indicated that until the matter is settled, Ruto’s hands are tied and he cannot give any directive to the government agency.
“He is yet to intervene because it is a subject of court and Okiya Omtatah has even gone to sue EPRA boss Kiptoo for contempt of court,” Koech stated.
Speaking during the talkshow, Tigania West MP John Mutunga added that EPRA is in a catch-22 situation and is currently caught between raising much needed revenues and balancing that with public interest.
He explained that the grievances Kenyans have raised regarding the price calculation criteria will be determined by the courts.
“Once the court decided the matter finally, we will get a clear direction,” the United Democratic Alliance MP stated.
Following the enactment of the Finance Act which increased VAT on fuel products from 8 per cent to 16 per cent, EPRA increased fuel prices by Ksh13 as of July 1.
However, following another review on July 14, the price of Super Petrol was reduced by Ksh0.85 to Ksh194.68. The price of diesel was not revised and remained the same at Ksh179.67.
“Taking into account the weighted average cost of imported refined petroleum products, the changes in the maximum allowed petroleum prices in Nairobi are as follows: Super Petrol and Kerosene decrease by Ksh0.85 and Ksh3.96 per litre respectively while Diesel remains unchanged,” read EPRA’s price review.
The announcement of the fuel prices triggered an uproar among Kenyans since the High Court had suspended the Finance Act, 2023 pending hearing and determination of the matter.
The suspension was extended further on Monday, July 10 following a suit filed by Busia Senator Okiya Omtatah.