The Supreme Court of Kenya has temporarily halted the enforcement of the Court of Appeal’s ruling, which had declared the Finance Act 2023 unconstitutional. This suspension follows petitions filed by the Cabinet Secretary for the National Treasury and Planning, along with other appellants, challenging the Court of Appeal’s decision.
The Finance Act 2023, which introduced several new taxes and amendments to existing tax laws, has been at the center of significant legal disputes since its implementation. Critics have argued that the Act was passed without adequate public participation and that some of its provisions were unconstitutional. The Court of Appeal had previously invalidated the entire Act, citing procedural violations and a lack of public input.
However, the Supreme Court has now put this ruling on hold pending the hearing and determination of the consolidated appeals before it. The court issued a conservatory order, suspending several key declarations made by the Court of Appeal in its judgment dated July 31, 2024.
The Supreme Court’s decision was influenced by concerns about the potential impact of the lower court’s ruling on government operations and revenue collection. The court also emphasized the importance of maintaining stability in the budget and appropriation process while the appeals are being considered.
For now, the government is allowed to continue collecting taxes under the Finance Act 2023. However, the future of the Act remains uncertain, as the Supreme Court’s final ruling will have significant consequences for the country’s tax laws and legislative procedures.
The consolidated appeals are scheduled to be heard by the Supreme Court on September 10 and 11, 2024. Legal experts, policymakers, and the public are closely watching for the Court’s decision.
