Kenya Hikes Fuel Prices Despite Court Order

Kenya announced Friday a hike in fuel prices in defiance of a court order blocking implementation of a raft of new taxes.

The cost of petrol, diesel and kerosene will go up from Saturday, the Energy and Petroleum Regulatory Authority said in a statement, a move that will have a ripple effect in a country hamstrung by a severe cost of living crisis.

EPRA said the price of petrol would jump to more than 195 shillings ($1.4) a litre to take into account the doubling of VAT on fuel products to 16 percent.

The announcement came despite the High Court of Kenya earlier suspending hotly contested new legislation that provides for new or increased taxes on certain salaries, a range of basic goods and services including fuel, food and mobile money transfers as well as a controversial housing levy.

President William Ruto had on Monday signed into law the finance bill which is expected to generate more than $2.1 billion and is aimed at shoring up the government’s depleted coffers and repair the heavily-indebted economy.

But the high court in Nairobi on Friday suspended the implementation of the legislation pending a hearing next Wednesday on a case filed by a senator challenging its constitutional legality.

Veteran opposition leader Raila Odinga, who has staged a series of demonstrations this year over Kenya’s economic woes — has asked his supporters to boycott the taxes, rallying them to carpool or walk whenever possible.