The High Court of Kenya is expected to rule on the suspension of the Finance Act that is set to double fuel tax to 16 per cent from the previous 8 per cent and introduce new taxes.

Justice Mugure Thande extended orders halting the government from collecting taxes outlined in the Finance Act, 2023 until she delivers a substantive ruling.

The petition was filed by Busia Senator Okiya Omtata stated that the law is unconstitutional adding that its implementation would subject Kenyas to great suffering.

The High Court suspended the Finance Act 2023 on June 30, a day after it was scheduled to come into force amid uproar over tax proposals. 

Justice Thande then directed the State to file a response by Tuesday, July 4.

The orders effectively stopped the government from levying any taxes under the new Act, including the 8 per cent VAT increment on fuel set to take effect Saturday.

The Energy and Petroleum Regulatory Authority (EPRA) however proceeded to effect an eight per cent increment in prices of petrol, diesel and kerosene, adjusting the VAT rate from 8 per cent to 16 per cent.

The increment resulted to a spike in fare prices that have seen many motorists counting losses due to passengers opting to walk to their places of work. 

President William Ruto’s government pushed the law through parliament despite stiff opposition, saying extra revenue measures were needed to help deal with growing debt repayments, and fund job-creating initiatives.

Doubling the fuel tax to 16 percent and the introduction a 1.5 percent housing levy for all employees is among a raft of taxation measures contained in the Finance Act 2023.