Court Upholds Sh7 Fuel Levy; Govt Blocks Carbon Credits; Bankers Urge CBK to Hold Rate at 9pc

The High Court upheld the Sh7 fuel levy hike, dismissing a petition that sought a refund for motorists for the increased road maintenance charge implemented in July 2024. The court ruled the government met constitutional standards for public participation. Separately, the Kenyan government denied Koko Networks approval to sell carbon credits internationally due to concerns over potential monopolization of the market. This decision hindered Koko's ability to subsidize its bioethanol cooking fuel, leading to its exit. In the financial sector, the Kenya Bankers Association (KBA) has urged the Central Bank of Kenya (CBK) to maintain the benchmark lending rate at 9 percent ahead of the Monetary Policy Committee (MPC) meeting. The KBA believes holding the rate will allow for the full transmission of previous cuts.