Court slams brakes on Ruto's first Finance Act
President William Ruto (seated) inks Finance Bill 2023 at State House Nairobi on June 26, 2023. Looking on are Deputy President Rigathi Gachagua (second right), Speakers of the National Assembly, Moses Wetang'ula (fourth right), and the Senate, Amason Kingi (fifth right), among others. PHOTO | COURTESY | PSCU
What you need to know:
- Lady Justice Mugure Thande on Friday issued interim orders against the implementation of the Act, which was due to come into effect tomorrow, July 1.
- This follows a case filed in the High Court by Busia Senator Okiya Omtatah.
The High Court has stopped the National Treasury from implementing the Finance Act 2023, throwing into limbo President William Ruto's plan to raise billions of shillings through far-reaching tax proposals to fund his maiden budget.
Lady Justice Mugure Thande on Friday issued interim orders against the implementation of the Act, which was due to come into effect tomorrow, July 1.
This follows a case filed in the High Court by Busia Senator Okiya Omtatah challenging the constitutionality of the Finance Bill, 2023.
Mr Omtatah was joined by activists Eliud Matindi, Michael Otieno, Benson Otieno and Blair Oigoro in suing National Treasury Cabinet Secretary Prof Njuguna Ndung'u and Attorney General Justin Muturi.
Kenya Revenue Authority (KRA) acting commissioner-general Rispah Simiyu was named as an interested party in the case.
Taxation matters
The senator argues that the Act contains about 30 sections that contravene the Constitution on taxation matters.
President Ruto assented to the Bill on Monday.
In her ruling, Justice Thande granted the conservatory orders until Wednesday when the case comes up for mention.
“This matter coming up on June 30, 2023, for directions on the notice of motion dated June 29, 2023, before Honourable Justice M. Thande upon considering the same, it is hereby ordered that the application be served today (June 30, 2023) upon all parties,” said the ruling.
“That I am satisfied that the Application meets the test for conservatory orders and I do grant prayers 2 and 3 of the Application until July 5, 2023 when the matter is scheduled for mention for directions,” it said.
