LSK sues Kenya Kwanza over fuel prices

Charles Kanjama , LSK  President during an interview at Spice FM [ File, Standard]

The Law Society of Kenya (LSK) has made good on its threat by filing a case challenging the implementation of new fuel prices.

In its case filed before the High Court in Nyamira, the Charles Kanjama-led society accuses the government of using an opaque formula to set diesel, petrol and kerosene margins.

Although LSK lawyer Wilkins Achoki explained that global prices have shot up owing to the US war with Iran, which has affected shipping at the Strait of Hormuz, he said Kenya’s mathematics are astronomical and do not reflect the true global trend at the pump.

Achoki argued that it is impossible to pinpoint how the Kenya Kwanza administration utilises the Sh5 billion Petroleum Development Levy Fund and how it tabulates price margins.

For this, he urged the court to compel the government to make public a full and disaggregated breakdown of the price build-up for Super Petrol, Diesel and Kerosene for the May–June 2026 cycle, including landed costs, taxes, levies, margins, exchange-rate assumptions, and the specific computation and utilisation of the levy.

“ The Petitioner contends that the impugned fuel price increment, the opaque deployment of the Petroleum Development Levy Fund, the temporary alteration of fuel standards, and the failure to institute adequate transparency, public participation and accountability measures amount to violations and threatened violations of Articles 10, 35, 42, 43, 46, 47, 69, 201 and 206 of the Constitution,” argued Achoki.

The society has sued Treasury Cabinet Secretary John Mbadi, Energy CS Opiyo Wandai, and Trade and Investment CS Lee Kinyanjui. It has also named the Kenya Bureau of Standards and the National Standards Council over the alleged supply of fuel with higher sulphur content.

According to Achoki, the government has put Kenyans’ health and financial safety at risk by allegedly allowing cheap, risky fuel to be sold at the pump at higher profit margins.

“Unless the Honorable Court urgently intervenes in the midst of the flagrant constitutional violations, the rights sought to be vindicated will be severely compromised. The temporary adjustment of fuel standards raises serious health and environmental concerns under Articles 42 and 69 of the Constitution.”

“Owing to the foregoing and given the magnitude of the issues raised herein, least of which is the procedure of increasing the fuel prices and failure to caution the public using the Petroleum Development Fund, and the Constitutional values that must be vindicated, this is a fit and proper case to grant the conservatory orders sought,” argued Achoki.

The society wants the court to order the government to revert to the previous price cycle until the case is heard and determined.

LSK CEO Florence Muturi, in a supporting affidavit, said the pump price increase has a ripple effect, leading to higher fare prices and ultimately increasing the cost of common goods and services, exposing taxpayers to unwarranted economic burden and frustration.

According to her, it is unclear how, in 2022, the effects of high global oil prices were contained through the Petroleum Development Levy, while the same effect is not being applied in 2026.

“For instance, in the August–September 2022 pricing cycle, the actual calculated price of super petrol was Sh214.03 per litre while the published price was Sh159.12 per litre, providing a cushion of Sh54.91 per litre which was compensated by the Petroleum Development Levy, which the respondents herein have failed to utilise,” she said.