The government’s plan to raise money to finance the 2023/24 budget suffered yet another setback after the Court of Appeal declined to lift orders suspending its implementation.
The Court declined to uplift a ruling by the High Curt imposing suspension of the Finance Act.
The Appellate Court directed the parties to appear for a ruling on July 28.
The Cabinet Secretary for Finance Njuguna Ndung’u through former Attorney General Githu Muigai argued that the suspension of the act is hurting government’s operation and that the State stands to lose over Sh200 billion this Financial Year.
According to the Cabinet Secretary, the suspension would hinder the implementation of 2023/24 budget, the first for the William Ruto-led Kenya Kwanza administration.
Busia Senator Okiya Omtatah Okoiti and others moved to the court challenging the Finance Act 2023 arguing that it is unconstitutional. The legislator has also termed the figure the government says it stands to lose as fictional meant to mislead the court.
“The Court of Appeal has declined to grant interim orders staying the ruling of Justice Thande which stayed the implementation of Finance Act, 2023 until when court will deliver the ruling on stay application on 28.7.23.” Senator Omtatah said in a tweet.
The Finance Act was assented to by the president of the Republic of Kenya on 26th July 2023 and came into force on 1st July 2023.
The tax which is at the centre of protests in the country makes a number of changes to Kenya’s income tax, Value Added Tax and Excise Duty regime as well as changes to the administration of taxes in the country to implement budgetary and fiscal measures for the 2023-2024 Financial Year.
Catholic Bishops have asked the government to repeal the Act basing their arguments on the high cost of living currently experienced by many Kenyans.
“Within this background, the recently enacted Finance Act places an unsustainable burden on already distressed citizens especially those within the low-income bracket. We therefore ask the president to repeal the Finance Act and institute a process that will seek to achieve the same goal within the context of current economic status.” Bishop Antony Muheria.