The High Court has summoned Energy and Petroleum Regulatory Authority (EPRA) Director General, Daniel Kiptoo clarify why he should not be held in contempt for allegedly flouting the court's order on the Finance Act 2023.
The court's directive, issued on July 10, explicitly prohibited any increase in petroleum prices, an order that Kiptoo is accused of disregarding.
The petitioner, Busia Senator Okiya Omtatah, the driving force behind this legal action, claims that despite being duly served with the court order, Kiptoo persisted in raising petroleum prices by a significant margin of 8 percent.
Omtatah asserts that the court's order was properly conveyed to Kiptoo, yet he chose to proceed with the fuel price increase, regardless.
This fuel price hike, imposed by the government, occurred in direct contradiction to an existing court order that had temporarily halted the implementation of the Finance Act 2023.
Read More
This legal challenge was brought forth by a coalition of activists, with Senator Okiya Omtatah being a prominent figure among them.
As a result of this revision, which encompassed an 8 percent Value Added Tax (VAT) increment, the cost of petrol surged to Sh195.5 per litre in Nairobi and other regions across the nation, while diesel prices reached Sh179.8 per litre.
The announcement of this price surge was swiftly made by the Energy and Petroleum Regulatory Authority (EPRA), mere moments after the issuance of a temporary injunction by the High Court.
Justice Mugure Thande, presiding over the matter, issued conservatory orders on Friday, mandating the State to respond by Tuesday, July 4.
This effectively halted the government from implementing any new taxes under the Finance Act 2023, including the contentious 8 percent VAT rise on fuel.
The implementation of this increment was originally scheduled for the ensuing Saturday.
In defiance of concerns voiced by civil society and the opposition, the Azimio la Umoja One Kenya Coalition, President William Ruto sanctioned the Finance Act 2023 into law after its approval by the National Assembly.
The dispute has now ascended to the High Court, with Director General Daniel Kiptoo potentially facing contempt charges for alleged non-compliance with the court's order.
The court is poised to scrutinize the situation, weighing the evidence presented by both parties.
The primary objective is to ascertain whether Director General Kiptoo's actions constituted a breach of the court's order.
The upcoming hearing is expected to unveil crucial insights into the events surrounding the fuel price escalation.
It will play a pivotal role in determining whether Director General Kiptoo's actions were indeed a violation of the court's directive.
The public is keenly expecting the court's decision, given its far-reaching implications on the implementation of the Finance Act 2023 and the government's authority to levy taxes.
