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The finance law, presented annually, outlines the government’s tax and revenue measures. A recent ruling by the Court of Appeal that last year’s Finance Act was unconstitutional dealt a blow to President William Ruto’s administration.
Kenya’s Supreme Court has temporarily suspended a lower court’s decision that declared the 2023 finance law unconstitutional. The suspension aims to maintain budget stability until the government’s appeal is heard next month.
The finance law, presented annually, outlines the government’s tax and revenue measures. A recent ruling by the Court of Appeal that last year’s Finance Act was unconstitutional dealt a blow to President William Ruto’s administration.
This comes after Ruto withdrew this year’s finance bill in June following significant youth-led protests, marking one of the biggest challenges of his presidency.
President Ruto has faced the difficult task of balancing the needs of Kenya’s struggling citizens with demands from international lenders like the IMF. He argues that tax increases are necessary to fund development programs and manage the country’s debt.
The Supreme Court stated that maintaining stability in the budget process is in the public’s best interest while the appeal is being considered. Hearings on the constitutionality of the 2023 finance law are scheduled for September 10 and 11.
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The government, which has been using the 2023 law to collect taxes since the withdrawal of this year’s bill, has not yet commented on the ruling. The 2023 law faced legal challenges after violent protests led by opposition parties last year. The law includes measures such as doubling the value-added tax on fuel, introducing a housing tax, and raising the top personal income tax rate.
