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High Court Blocks 10% Crude Oil Duty, Declares Government Decision Unconstitutional

The High Court has handed Kenyans a significant reprieve after Justice Bahati Mwamuye struck down the government’s plan to impose a 10 percent import duty on crude oil, declaring the decision unconstitutional, null and void.

In the judgment, the court found that the State introduced the levy without involving the public or seeking the approval of Parliament, despite the policy having a direct and immediate impact on the cost of fuel and essential commodities across the country. Justice Mwamuye held that any fiscal measure affecting consumers must undergo meaningful public participation and parliamentary oversight.

He ruled that the government acted outside the law by relying on the East African Community Common External Tariff framework without subjecting the decision to the constitutional processes required locally. Measures adopted from regional instruments, the court said, cannot bypass public input or legislative scrutiny simply because they originate from international or regional bodies.

Justice Mwamuye also stopped the implementation of the EAC Gazette Notice dated 30 June 2024, which had introduced the 10 percent duty on crude oil entering Kenya. The notice had formed the basis of the increased levy that contributed to the rise in pump prices and higher costs of goods linked to fuel.

With the ruling, the government is now barred from enforcing the duty, offering Kenyans relief at a time when the price of fuel has driven up the cost of transport, production and household essentials. The judgment is expected to influence ongoing conversations on taxation, public participation and economic decision-making in the country.

CH Reporter

CH Reporter

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