Lawyer: Move to reduce VAT to 8 per cent by Treasury unconstitutional though a relief to Kenyans

Constitutional lawyer Suleiman Bashir during the interview in his office at Transnational Plaza in Nairobi on Thursday. [James Wanzala, Standard] The move to reduce Value Added Tax (VAT) on fuel from 13 per cent to eight percent without parliamentary approval is illegal. A city lawyer told The Standard that parliament has a critical role to play in the process and faulted why it was sidestepped. "When you are tinkering with any law, such as the question of VAT and the VAT Act, there must be parliamentary approval," said advocate Suleiman Bashir. He stated that any changes regarding VAT in the country must be subject to Parliamentary scrutiny and approval. "If we want to reduce it or even increase it further, Parliament has a critical role in that regard. Any issues related to VAT or any other finances, just like they affect the rights of the people of Kenya, must be placed before our House," said Bashir. The reduction by the Energy and Petroleum Regulatory Authority (EPRA) was communicated through a Ministry's Legal Notice No. 70 dated April 15, 2026, and issued by the Cabinet Secretary for the National Treasury. Former National Assembly Speaker and Attorney General Justin Muturi, who is also a member of the United Opposition, on Wednesday urged President Ruto to ask National Assembly Speaker Moses Wetangula to convene a special sitting to remove VAT and totally scrap the Sh7 charged on fuel levy. The reduction comes after the Energy and Petroleum Regulatory Authority(EPRA) on Tuesday night in its monthly fuel prices review increased the cost of super petrol by Sh28.69 to Sh206.97 per litre, diesel by Sh40 to Sh 206.84, while kerosene remained the same at Sh152.78 per litre. The EPRA had attributed the increase to high landing costs of petroleum products in the international market. The move by the Ministry through EPRA came hours after President William Ruto announced the reduction of VAT on fuel from 16 per cent to eight per cent for three months, alongside a Sh6.5 billion government subsidy intervention to cushion Kenyans from the high cost of living. Speaking in Suneka, Kisii on Wednesday, President Ruto said the measures were aimed at easing pressure on households following a surge in global fuel prices linked to the ongoing conflict in the Middle East. In Nairobi, the price of super petrol has decreased by Sh9.37 per litre to sell at Sh197.60, while Diesel has dropped by Sh10.21 per litre to sell at Sh196.60. A spot-check by The Standard on Thursday in Nairobi confirmed several petrol stations had effected the price change. The reduction comes after hue and cry from Kenyans as transport operators had started increasing fares, which also risked increasing the cost of leaving. The United Opposition during a press conference on Wednesday at Wiper Democratic Movement (WDM) offices in Karen, had also given Ruto a seven-day ultimatum to address a series of demands regarding high fuel prices, failure of which would result in mobilising Kenyans for mass protest. According to Bashir, the move by President Ruto through EPRA, if left unchallenged, might be abused in the future. "When it comes to VAT, just like the other very critical taxes in our country that is not just a level field whereby the President or the Cabinet Secretary can play as they will. If we are to move VAT right from 16 per cent to 13 per cent to eight per cent, that level of parliamentary scrutiny must happen to the extent we have to have some imposition in the VAT law so that we can have some capping," said Bashir. He added, "This particular issue is supposed to reflect itself within the VAT law. If that, devoid of that, proceeding with this would be difficult to the extent that, in the next few months, we might have the President or even the Cabinet Secretary telling us, we are waking up today to scrap this. So the essence of capping it within the law is to protect the citizenry." He blamed Parliament for failing to appreciate its critical role in as far as this issue is concerned. "When this kind of emergency or issues are supposed to be dealt with at this particular critical juncture, the House is supposed to be convened in a very critical manner or critical situation so that it can discuss this particular issue," he said. The lawyer said if this particular issue was placed before the House, the MPs, since they are representatives of common citizens, would've either passed a law to reduce it further from 8 per cent or to completely scrap VAT on fuel, just like it has happened in some countries like Northern Cyprus and Cambodia, which reduced it from 10 percent to 4 per cent.

Lawyer: Move to reduce VAT to 8 per cent by Treasury unconstitutional though a relief to Kenyans

Get Full Access for Ksh299/Week.

Related Topics

Similar Articles

Latest Stories

The Standard Insider

Digger Classified

GET OUR NEWSLETTER

CONNECT WITH US

FOR THE LATEST JOB ADVERTS

Similar Articles

Vipingo Ridge leads Kenya's double triumph at World Golf Awards

Nusrat Mohammed: The woman who made saving abused animals her calling

One shot, no mistakes: How digital tech has killed the art of old-school filmmaking

State extends high sulphur fuel import waiver by six months

DIGGER JOBS

Digger Motors

Digger Real Estate

Lawyer: Move to reduce VAT to 8 per cent by Treasury unconstitutional though a relief to Kenyans

Get Full Access for Ksh299/Week.

Related Topics

Similar Articles

Latest Stories

The Standard Insider

Digger Classified

GET OUR NEWSLETTER

CONNECT WITH US

FOR THE LATEST JOB ADVERTS