Fuel tax: Uhuru to meet CS Rotich, Speaker Muturi at State House

FILE PHOTO | President Uhuru Kenyatta and Treasury CS Henry Rotich at State House.
FILE PHOTO | President Uhuru Kenyatta and Treasury CS Henry Rotich at State House.

President Uhuru Kenyatta is expected to meet Treasury Cabinet Secretary Henry Rotich and Parliament Leadership on Tuesday over the 16percent fuel tax.

Also ReadUhuru makes low key return after 10-day overseas trip

Attorney General Paul Kihara Kariuki and Finance Committee Chairman Joseph Limo will also be at the State House meeting.

The President jetted back into the country on Sunday after a 10-day trip overseas.

A decision by MPs to suspend the 16percent fuel tax for another two years would have had to be signed by the President before it took effect.

However, President Uhuru Kenyatta left the country before signing the amendment to the Finance Bill 2018. It is still not clear whether he intends to do so now that he is back in the country.

A few days later, the Energy Regulatory Commission (ERC) issued a directive to implement the new tax.

Despite pressure from several quarters, CS Rotich remained adamant that the VAT on petroleum products must be implemented.

The move saw fuel dealers and transporters stage a go-slow which resulted in fuel shortages across the country last week.

Also Read: Fuel shortage now hits President Uhuru Kenyatta’s backyard

Motorists had to queue for hours to get the scarce commodity which now retails at Ksh.127 per litre in Nairobi and Ksh.141.61 per litre, the highest, in Mandera.

The ERC later issued a warning that they would revoke licences for dealers and transporters of those who participated in the strike. They resumed operations a day later.

The International Monetary Fund (IMF) has been pushing the government to raise its revenues as budget deficits and debt continue to spiral.

Fuel products are part of Kenya’s most taxed commodities.

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