Kenya’s Supreme Court Suspends Ruling Nullifying 2023 Finance Law

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Kenya’s Supreme Court Suspends Ruling Nullifying 2023 Finance Law

Loveworld / 52 seconds

August 21, 2024

2 min read

On Tuesday, Kenya’s Supreme Court temporarily suspended a lower court’s ruling that deemed the 2023 Finance Law unconstitutional. The Supreme Court stated that maintaining budgetary stability was crucial until the government’s appeal is heard next month.
The finance law, presented annually to outline revenue-raising measures and tax adjustments, has been a key tool for the government. The Court of Appeal’s recent judgment against the 2023 Finance Act marked a significant setback for President William Ruto, who faced public protests over the bill earlier this year. These protests, driven largely by youth groups, were among the most substantial challenges to Ruto’s presidency.
President Ruto has argued that tax increases are essential for funding development projects and managing Kenya’s substantial public debt. The 2023 Finance Law, which included measures such as doubling the value-added tax on fuel, introducing a housing tax, and raising the top personal income tax rate, was enacted to address these financial needs.
The Supreme Court’s decision to suspend the nullification reflects a balance between public interest and the need for legal stability in budgetary matters. Hearings on the constitutionality of the 2023 Finance Law are scheduled for September 10 and 11.
The government, which has been relying on the 2023 Finance Law for ongoing tax collection, has not yet commented on the suspension. The law was challenged in court following violent protests last year led by opposition parties.