A day after the Court of Appeal nullified President William Ruto’s Finance Act of 2023, the government has announced its next course of action.
The state, through the Treasury Ministry, is heading to the Supreme Court to challenge the ruling that declared the Finance Act of 2023 unconstitutional, null, and void.
According to the Treasury, the Court of Appeal’s ruling did not consider public interests and could lead to a constitutional crisis if adhered to.
The Finance Act of 2023 had helped the government raise about Ksh 510 billion in additional tax collections, a move that had raised an uproar from Kenyans who complained of over-taxation.
The government has argued that the Court of Appeal’s ruling presents a near-insurmountable challenge to effective government operations and could disrupt functions across various ministries and counties.
By invalidating the Finance Act 2023, the court has ostensibly created a scenario where the government must rely on outdated legislation, thus obstructing its ability to collect and allocate funds lawfully.
The state has expressed concerns that this could trigger a series of legal and administrative challenges, including potential government shutdowns if stay orders are not secured.
The Finance Act of 2023 was a crucial tool for the Ruto administration to raise funds to support its agenda, especially after withdrawing the Finance Act of 2024 following waves of protests from Gen Zs.
The Finance Act of 2023 was a significant piece of legislation for President Ruto’s government, designed to address the fiscal challenges and increase revenue.
However, the additional Ksh 510 billion in tax collections sparked widespread public discontent, with many Kenyans feeling the burden of over-taxation.
The Treasury’s decision to appeal to the Supreme Court underscores the gravity of the situation.
The government is concerned that without the Finance Act of 2023, it will face significant hurdles in managing the country’s finances and delivering on its commitments.
The appeal to the Supreme Court aims to overturn the Court of Appeal’s decision and reinstate the Finance Act of 2023 to ensure continued government operations and stability.
The government’s next steps are critical as they navigate this complex legal and administrative situation.
The outcome of the Supreme Court appeal will have far-reaching implications for the country’s fiscal policy and governance.
All eyes will be on the Supreme Court as it deliberates on this pivotal issue, which holds the potential to shape Kenya’s economic future and the functioning of its government.
In the meantime, the government must prepare for the possibility of operating under the constraints of outdated legislation while seeking legal remedies.
The coming weeks will be crucial in determining the path forward for President Ruto’s administration and the country’s financial health.
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