Supreme Court suspends ruling on Finance Act 2023, what this means for Kenyans

Supreme Court of Kenya has temporarily suspended the Court of Appeal's decision that declared the Finance Act 2023 unconstitutional.

This decision comes after the Cabinet Secretary for the National Treasury and Planning, along with other appellants, filed petitions challenging the Court of Appeal's ruling.

The Finance Act 2023, which introduced a series of new taxes and amendments to existing tax laws, has been the subject of intense legal battles since its enactment.

Critics argue that the Act was passed without proper public participation and that some of its provisions are unconstitutional.

The Court of Appeal had previously nullified the entire Act, citing violations of the legislative process and lack of public participation.

However, the Supreme Court has now suspended this ruling, pending the hearing and determination of the consolidated appeals before it.

"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 thehearing and determination of the consolidated appeal before this court," the Supreme Court ruled.

The Supreme Court's decision is based on several factors, including the potential impact of the Court of Appeal's ruling on government operations and revenue collection.

The court also considered the need to maintain stability in the budget and appropriation process while the appeals are being heard.

This decision allows the government to continue collecting taxes under the Finance Act 2023 for the time being.

However, the fate of the Act remains uncertain, and the Supreme Court's final ruling will have significant implications for the country's tax regime and legislative processes.

The consolidated appeals are set to be heard by the Supreme Court on September 10 and September 11, 2024.

The Court's decision is eagerly awaited by legal experts, policymakers, and the public alike.

What does this mean for taxpayers?

For taxpayers, this ruling means that the taxes introduced under the Finance Act 2023 will continue to be collected for the time being.

This is because the Supreme Court has suspended the Court of Appeal's decision that had declared the entire Act unconstitutional.

However, the fate of these taxes remains uncertain, as the Supreme Court is yet to make a final decision on the consolidated appeals.

The Supreme Court's final ruling will determine whether these taxes are constitutional and can continue to be enforced.

If the Supreme Court upholds the Court of Appeal's decision, it could have significant implications for government revenue and public spending.