Deputy President William Ruto has hinted on the review of the fuel prices following the increase of the 16 percent VAT effective 1st September 2017.
According to DP Ruto, parliament will work to resolve the crisis that is expected to degenerate in the coming weeks after motorists and workers threatened to down tools.
He further said in a statement that a balance would be created so as not to burden Kenyans.
The DP spoke on Sunday during a prayer service at Good Shepherd Catholic Church in North Horr, Marsabit County.
His directive came days after Amani National Congress leader Musalia Mudavadi and a section of the coalition’s MPs gave the government three days to work on the increased VAT failutre to which they will mobilise Kenyans for protests.
Nasa MPs Anthony Oluoch (Mathare), Mark Nyamita (Uriri) and Caleb Amisi (Saboti), threatened to move “Removal from office” motion against National Treasury Cabinet Secretary Henry Rotich if he fails to suspend the law.
Baringo Senator Gideon Moi also raised concern in a statement saying, “Though the government needs the money to fund development projects, the ripple effect of the tax is far and wide — including high cost of living, rising inflation, loss of jobs and slow growth of the economy,” “It is prudent for the government and all other relevant agencies to explore other ways of raising revenue other than implementing this tax”.
Kenya Association of Manufacturers head of policy, research and advocacy Job Wanjohi also opposed the VAT law, saying it would unnecessarily increase the cost of doing business, thereby affecting the country’s balance of trade with its partners.
On Thursday, the National Assembly passed the Finance Bill 2018 that essentially delayed until 2020 the implementation of the “punitive law”, which nonetheless came into force on September 1.
The law was to take effect in 2013 but, owing to sustained public outcry, it was deferred to 2016 and then to 2018.
But the move by Mr Rotich to direct Kenya Revenue Authority (KRA) and Energy Regulatory Commission (ERC) to effect the law that saw fuel prices shoot up on September 1, 2018, has angered the majority of poor Kenyans.
“The Executive will be meeting Parliament to address the concerns raised. A solution will be reached,” Mr Ruto said, adding that the intended solution will not slam the brakes on the government’s multibillion development plans.