The Chief Justice Koome-led bench has overturned the Court of Appeal’s decision that declared the Finance Act 2023 unconstitutional, giving a sigh of relief to the National Treasury after months of waiting following the Appellate’s decision.
“The preliminary objection on this Court’s jurisdiction is overruled. We hereby set aside the Court of Appeal’s finding declaring the entire Finance Act, 2023, unconstitutional,” the Supreme Court ruled.
It will be a huge blow to Kenyans who had raised concerns pointing to the financial implications the Finace Act weighed on them after it successfully sailed through all the stages.
However, the national Treasury will smile all the way as it seeks to raise more taxes in the long run to be able to meet the budget deficits that are said to have derailed several government goals.
One of the biggest concerns that became the subject of debate of the Finance Act 2023 was the issue of public participation. However, the Supreme Court bench ruled that the Parliament met all the legislative processes leading to the enactment of the Finance Bill 2023.
The Court of Appeal had declared the entirtety of the Act unconstitutional, null and void, citing lack of public participation, which prompted the petitioners, including the National Treasury, Attonry General, the National Assembly to rush to the Apex Court for intervention.
The Supreme Court has recommended to the parliament “ to put in place reasonable measures for considering the proposals, views, suggestions, and comments received during public participation exercise,” which would enhance transparency in the process.
The Finace Act was President Ruto’s major economic turbines, which sought to rebound the economic status of the Kenya. However, the he faced significant setbacks after the enacted bill turned contentious, triggering anationwied protests that resulted several deaths and injuries across the county.
The act introduced the housing levy, which sought an equal share of 1.5% of contribution both by the employer and the employee.
The Finance Act 2023 also doubled the VAT on petroleum products from (exlcuding LPG) from 8% to 16%. This skyrocketed the cost of basic commodities, sparking outcry among Kenyans.
While Ruto’s regime finds itself between a rock and a hard place, Kenyans acted calm on the surface while boiling underneath until the introduction of the Finance Bill 2024, which became the boiling of the never-seen before nation-wide demonstrations in the country.
