By Enyichukwu Enemanna
Authorities in Kenya on Friday announced a hike in fuel prices, ignoring a court order setting aside the implementation of a raft of new taxes.
The Energy and Petroleum Regulatory Authority (EPRA) had said in a statement that with effect from July 1, prices of petrol, diesel and kerosene would go up, a move that will have a ripple effect in a country battling 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 contested new legislation that provides for new or increased taxes on 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 revenue and repair the heavily-indebted economy.
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 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.
