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The Supreme Court Of Kenya

Nairobi, Kenya, Aug 20 – The Supreme Court has intervened to suspend the Court of Appeal's ruling that declared the Finance Act 2023 unconstitutional, providing a significant reprieve for President William Ruto's administration.

In its decision, the Supreme Court criticized the appellate court, underscoring the potential uncertainties and operational difficulties the government could face if the Act remained invalid. The Court emphasized that public interest heavily favored keeping the Finance Act in effect while the appeal is pending, noting that reversing the Act’s implications could become impractical if the appeal ultimately succeeded.

The ruling stated, “A conservatory order is hereby issued suspending and staying the declarations in Orders iii, iv, vi, vii & ix(i) issued in the Court of Appeal judgment dated 31st July 2024 in Civil Appeals Nos. E003, E016, E021, E049, E064 & E080 of 2024 (Consolidated) pending the hearing and determination of the consolidated appeal before this Court.”

Unlike the Court of Appeal, which declined to stay the High Court’s judgment, the Supreme Court asserted its discretion to issue interim orders as necessary. This suspension is intended to preserve the core issues of the appeal and ensure continuity in the budget and appropriation process.

The suspension will remain in force until the consolidated appeal, scheduled for hearing on September 10, is resolved.

The Court of Appeal had, on July 31, struck down the Finance Act 2023, citing procedural flaws in its enactment. The three-judge bench, consisting of Justices Kathurima M’Inoti, Agnes Murgor, and John Mativo, determined that amendments to several tax laws, including the Income Tax Act, Value Added Tax Act, Excise Duty Act, Retirement Benefits Act, and Export Processing Zones Act, were unconstitutional due to the lack of fresh public participation after the amendments were made.

The judges declared, “The enactment of the Finance Act 2023 violated Articles 220 (1) (a) and 221 of the Constitution as read with sections 37, 39A, and 40 of the Public Finance Management Act, which prescribes the budget-making process, rendering the Finance Act 2023 fundamentally flawed, void, and unconstitutional.”

This ruling by the Supreme Court offers a crucial lifeline to the government, especially following the contentious withdrawal of the Finance Bill 2024 amidst intense protests led by the Gen Z movement.

The World News Agency (TWNA)