On Saturday, July 1, Busia Senator Okiya Omtatah issued an ultimatum to the Energy Regulatory Authority of Kenya (EPRA), demanding a reduction in fuel prices or face legal action.
In an interview with a prominent media outlet, the senator revealed that he had already contacted EPRA’s Managing Director, Daniel Kiptoo Bargoria, following the regulator’s increase in prices for super petrol, diesel, and kerosene.
He urged EPRA to restore the fuel prices to their June 14 levels. Prior to the price hike, super petrol was sold at Ksh182.40, diesel at Ksh167.28, and kerosene at Ksh161.48. If EPRA fails to comply with his request, the senator warned that he would initiate a lawsuit against the energy regulator.
“I talked to the MD and I hope he will act. We focused on the court orders that suspended the Finance Act and they gave an injunction against any part of it.
“I have told him if they ignore, I will file a contempt proceeding against them. I will take them to court to be punished for disobeying court orders,” Omtatah stated.
The senator emphasized that he had notified EPRA about the two court orders that prohibit the government from implementing the Finance Act. He argued that any attempt to enforce any provision of the Act would be considered contempt of court.
EPRA raised fuel prices to Ksh195 following President William Ruto’s signing of the Finance Bill 2023. The Act includes a doubling of the value-added tax (VAT) imposed on fuel products, increasing it from 8% to 16%.
The Azimio party, led by Raila Odinga, put forth proposed amendments to that particular section of the Finance Act, but they were unable to successfully defend it in Parliament due to the dominant position of Kenya Kwanza.
The opposition cautioned that doubling the fuel value-added tax (VAT) to 16% would have a negative impact on the cost of living in the country. However, Kenya Kwanza defended the increase, arguing that it would enable the government to generate funds for road construction and rehabilitation purposes.
by: JobW