Court Suspends Finance Act 2023
On Friday, June 30, High Court Judge Mugure Thande issued conservatory orders postponing the application of the Finance Act 2023.
The Busia Senator Okiya Omtatah petitioned the court to halt the tax increases until his application was heard and decided, and the court found in his favour.
Also approved was Omtatah’s proposal to prevent Ruto from passing the Finance Act 2023.
“I am certain that the application satisfies the requirements for conservatory orders, and I grant requests 2 and 3 until July 5, when the subject is scheduled for a mention for directions.
Part of the decision stated, “The Honourable Court be pleased to issue a conservatory order suspending the Finance Act, 2023 pending the hearing and determination of the application and/or the Petition.”
The court subsequently granted an interim injunction preventing the respondents, interested parties, and their agents from carrying out the Finance Act of 2023 in any way.
Before the end of the day on Friday, June 30, 2023, Justice Thande directed the petitioner to serve all parties, including Treasury CS Njuguna Ndung’u.
She also mandated that the respondents submit their replies by Tuesday, July 4; the High Court will then set a hearing date following that.
The petition questioned the constitutionality of several provisions of the Finance Act, 2023, including the introduction of a new digital tax, changes to the taxation of mobile money operators, and an increase in the Value Added Tax (VAT) on petroleum products from 8% to 16%.
The Busia Senator claimed in a statement to Kenyans.co.ke that the Finance Act’s provisions infringed against the rights to equality, property, and a fair trial. He added that the rules were capricious and irrational.
Court Suspends Finance Act 2023
“Forcing employees to contribute an amount of money based on the applicable blanket deductible percentage without consideration of their existing contractual obligations on their salaries is not reasonable,” Omtatah declared.
According to Omtatah, individuals involved in the activism have won a big success with the delay of the Finance Act’s implementation.
He added that it was also a win for Kenyan taxpayers, who will no longer be subject to the VAT increase and other tax system reforms.
Kuria Kimani, the head of the National Assembly’s Finance and National Planning Committee, told the media in a statement that the conservatory orders would continue until the matter was heard and decided.
The Finance Act’s suspension of implementation, according to Kuria, who is also the MP for Molo, is a significant setback for the administration and evidence that some people did not have the government’s best interests at heart.
