In Summary
  • He said postponing the implementation of the act for two more years will not really solve the problem.

  • "We either repeal altogether because between now and 2020 nothing will change," the CAS said.

  • He said Treasury is alive of the cries of the public and a lot of consultation is going on.

The National Treasury has defended its decision not to halt implementation of 16 percent VAT on fuel.

Chief Administrative Secretary Nelson Gaichuhie on Wednesday told a senate committee said that they have not been served with any court order.

COURT BATTLE

Mr Gaichuhie told the Senate Committee on Energy that they have not disobeyed any court ruling.

"We are not ignoring or disobeying any court but until served, we can't act," Mr Gaichuhie said.

He said postponing the implementation of the act for two more years will not really solve the problem.

"We either repeal altogether because between now and 2020 nothing will change," the CAS said.

He said Treasury is alive of the cries of the public and a lot of consultation is going on.

"There are meetings between Treasury and national assembly and hope a solution will be found," he said.

But as Gaichuhie was defending himself before the committee, the High Court was issuing new orders on a contempt case facing his boss Henry Rotich and Energy Regulatory Commission Director-General Robert Pavel Oimeke.

Sitting in Kisumu, High Court judge Fred Ochieng ruled that the temporary orders stopping implementation of the tax still stands.

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