Another blow as court halts Sh7 Fuel Levy increase pending case

A court in Mombasa has temporarily halted the government’s plan to increase the fuel maintenance levy from Sh18 to Sh25 a litre.

Justice Gregory Mutai issued the order, effectively reducing the fuel levy by Sh7 pending a hearing scheduled for August 28. The judge deemed the notice of motion urgent and directed that it be heard before Presiding Judge Olga Sewe on the set date.

Justice Mutai stated: “Pending the hearing of the notice of motion, a conservatory order is issued restraining the respondents, either jointly or severally, whether by themselves, their officers, agents, employees, or other persons or entities acting under the respondents’ instructions, from implementing and enforcing the Road Maintenance Levy Fund (Imposition) Order 2024.”

George Juma filed a petition to stop the implementation of the roads levy, which was supported by Haki Yetu, an activist group that argued the levy was unconstitutional, illegal, unreasonable, and harsh.

Lawyers Willis Oluga and E.K. Owinyi, representing Haki Yetu, argued that the levy, which took effect on July 15, 2024, was implemented without public participation. Just last week, Justice Stephen Githinji had also certified Haki Yetu’s case as urgent and directed the applicants to serve the respondents by August 8, 2024.

Justice Githinji noted that the main issue in the application and petition was that the Road Maintenance Levy Fund was published and promulgated without public participation, violating Article 10 of the Constitution of Kenya, 2010.

The petitioners have sued the Cabinet Secretary for Roads and Transport, the Kenya Roads Board (KRB), the Energy and Petroleum Regulatory Authority (EPRA), and the Attorney General.

Oluga and Owinyi claimed that despite the levy being illegal and unconstitutional, the respondents had already begun implementing and enforcing it.

Haki Yetu’s Programme Coordinator for Governance, Marius Kioko, and Juma highlighted that former CS Kipchumba Murkomen imposed the fuel levy on premium petrol, regular petrol, and gas oil at Sh25,000 for every 1,000 litres at 20 degrees Celsius.

Kioko argued that the proponents of the levy were not present to justify its rationale and objective, and that the beneficiaries of the fund, Kenya Rural Roads Authority and Kenya National Highway Authority, were not familiar with the formula used to justify the levy increase. He also pointed out the lack of public participation, stating that the respondents did not consider the impact of the order on the public.

“The Road Maintenance Levy Fund 2024 was published and promulgated by Murkomen without adequate, effective, meaningful, proper, and tangible public participation, thereby violating Article 10 of the Constitution of Kenya 2010,” said Kioko.

The petitioners are seeking conservatory orders to restrain the government from implementing the Road Maintenance Levy Fund.

Kioko also criticised the public fora held on July 8, 2024, describing them as poorly organised and merely a formality.