Kenya’s High Court blocks tax hikes in newly signed law

Kenya’s High Court on Friday suspended the implementation of a newly signed finance law that was set to double fuel tax and introduce new taxes.

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

The court granted the suspension in a case brought by an opposition senator seeking a declaration that certain parts of the law should be stopped on grounds that they are unconstitutional.

“I’m satisfied that the application meets the test for conservatory orders,” said Justice Mugure Thande in a copy of initial orders in the case, adding that the matter will come up again on July 5.

The law, which is known as the finance act, was set to double the fuel tax to 16% and introduce a 1.5% housing levy for all employees.

Source: Reuters