The High Court has reversed orders that halted the government’s move to import duty-free cooking oil.
In his verdict, Justice John Chigiti ruled that the court lacked jurisdiction to prosecute the matter presented by the Law Society of Kenya challenging the move.
According to him, the LSK failed to explain the procedure used to obtain two critical documents used in the case, insisting that they were confidential and required approval to access them.
As such, Justice Chigiti reversed an initial order that stayed importation of the oil pending determination of the case.
“The orders issued on 30th June 2023, granting the Applicant/ Respondent leave to institute leave judicial review proceedings, and the stay of implementation of the third respondent’s letter and fourth respondent’s circular dated 14th of February 2023, are hereby set aside,” the court papers read in part.
Consequently, the ruling now allows the government to proceed with the importation plans.
Also Read: Win for Ruto as Court of Appeal Lifts Finance Act Suspension
Chronology of Case
President William Ruto and his cabinet approved the decision allowing the Kenya National Trading Corporation (KNTC) to import 125 million kilograms of cooking oil duty-free in February.
The move, according to the National Treasury, sought to stabilize prices of basic commodities amid the surging inflation and the high cost of living.
However, the decision faced legal hurdles after the Law Society of Kenya filed a case seeking to stop the move.
LSK argued that the decision to exempt oil imports from tax was unconstitutional and had failed to follow due procedure as provided for in the law.
In addition, the LSK accused the government of failing to engage local oil importers in the process of arriving at the decision.
Also Read: Govt Unveils Mama Pima Cooking Oil ATM – How It Works
Reprieve for KNTC
With the new ruling, the KNTC will proceed with importation plans. KNTC had complained that the orders to stop oil importation exposed it to a risk of incurring losses of up to Ksh17 billion.
Moreover, Kenyans will hope to benefit from the duty-free importation which the government noted would help to alleviate the high cost of living occasioned by rising cost of basic commodities.
In August, the Ministry of Trade unveiled public oil dispensers named “Mama Pima” which the state noted would help to provide affordable cooking oil to the public.
The plan would see the KNTC import the duty-free oil and supply it to traders operating the dispensers in different places across Kenya.
