Nairobi — Busia Senator Okiya Omtatah has vowed to file contempt proceedings against the Energy and Petroleum Regulatory Authority (EPRA) for violating a court order suspending the Finance Act 2023.
Omtatah made the announcement on Sunday stating that he had already informed EPRA Managing Director Daniel Kiptoo of his intentions if the authority fails to comply with the court order.
"I talked to the MD EPRA. We focused on the court orders that suspended the Finance Act and they gave an injunction against any part of it. [I]Told him if they ignore, I'll file contempt proceeding against them for disobeying court orders," he said.
Omtatah's intension to pursue contempt of court against the agency tasked to regulate prices of petroleum communities followed an advisory reviewing fuel prices upwards on account of a 16 per cent VAT charge introduced under the Finance Act.
EPRA adjusted fuel prices on Friday despite a court order temporarily halting the implementation of the Finance Act 2023, following a case filed by activists led by Omtatah.
The prices which became effective on Saturday, July 1, marked an eight per cent increment on account of a doubled VAT rate.
The review resulted in petrol retailing at Sh195.5 in Nairobi while diesel's price per litre was set at Sh179.8 .
Justice Mugure Thande issued conservatory orders on Friday, June 30, suspending the new tax measures directing the State to file a response by Tuesday, July 4.
Contested tax measures
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The orders effectively stopped 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 Finance Bill into law on June 26 after the National Assembly adopted his tax proposals despite concerns from civil society and the Opposition Azimio coalition.
Azimio leader Raila Odinga has already announced protests against the new Act from July 7, accusing President William Ruto of ignoring the plight of Kenyans.
"The president does not listen to Kenyans. He does not care and that is why we must go to the streets because that is the only language he understands," Raila told a rally in Nairobi's Kamukunji grounds on Tuesday.
Omtatah-led petitioners contested the passage of twenty-two sections of the Act "which were not in the Bill but were introduced on the floor of the National Assembly."
They further challenged adoption of another 40 provisions without the input of the Senate arguing the said tax proposals required an endorsement by the Senate.
The petitioners also challenged public participation in the law-making process as being inadequate.
