Nairobi — The High Court has suspended the government's decision to impose a 10 percent import duty on crude oil, declaring the levy unconstitutional, null and void.

In the landmark ruling delivered Thursday, Justice Bahati Mwamuye found that the government failed to conduct public participation or involve Parliament in a decision that directly affects consumer prices and access to essential commodities.

Justice Mwamuye held that any move to adopt or effect measures under the East African Community (EAC) Common Market commitments must undergo robust public scrutiny and legislative oversight, as required by the Constitution.

"Any decision by the government to apply, stay, or adopt measures under the EAC framework must involve public participation and parliamentary scrutiny. Failure to do so violates the Constitution," the judge ruled.

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The judgement also barred enforcement of the EAC Gazette Notice dated 30 June 2024, the legal instrument through which the duty had been operationalized.

The now-suspended levy had contributed to a steady rise in the cost of fuel and fuel-dependent commodities across the country.

What the Ruling Means for Kenyans

The effect of the ruling means that the 10% import duty on crude oil cannot be implemented unless due process is followed and fuel prices, which had seen upward pressure from the tax, may now stabilize or reduce depending on future policy adjustments.

The government will be required to conduct public participation and present any similar taxation measures before Parliament.

The declaration is also expected to ease inflationary pressure on households already grappling with high living costs, while reinforcing constitutional safeguards on public finance decisions.