Kenya’s Supreme Court Suspends Decision on 2023 Finance Law

Kenya’s Supreme Court has temporarily suspended a lower court’s decision declaring the 2023 finance law unconstitutional. The suspension aims to maintain budget stability until the government’s appeal is heard next month. The 2023 finance law, which outlines the government’s tax and revenue measures, had faced legal challenges following violent protests led by opposition parties.

Last year’s Finance Act was declared unconstitutional by the Court of Appeal, dealing a significant blow to President William Ruto’s administration. In response, Ruto withdrew the finance bill this year, citing widespread youth-led protests against tax increases.

As part of its efforts to manage debt and fund development programs, President Ruto’s government has been pressing for increased taxation. However, he has faced pressure from both domestic critics and international lenders, including the International Monetary Fund (IMF), to balance the country’s needs with the demands for debt reduction.

In suspending the decision, the Supreme Court cited the public’s best interest in maintaining budget stability. Hearings on the constitutionality of the 2023 finance law are scheduled for September 10 and 11.

Despite the suspension, the government has been collecting taxes under the 2023 law, and it is still unclear whether the court’s ruling will have a significant impact on Kenya’s tax landscape. With the fate of the 2023 finance law still uncertain, only time will tell if the government will successfully balance the country’s financial needs with the demands of its citizens and international partners.