In a significant victory for President William Ruto’s administration, Kenya’s Supreme Court overturned a lower court decision on Tuesday, reinstating the country’s 2023 finance law. The law, which includes various tax increases, had been nullified by an appeals court, but the Supreme Court has now deemed it constitutional.

The 2023 finance law was initially passed to increase tax revenue and help address Kenya’s growing debt. However, it sparked opposition-led protests and unrest, resulting in over 60 deaths in June and July. The law includes hikes in fuel taxes, a new housing levy, and higher top income tax rates. President Ruto has maintained that the tax increases are necessary for funding development projects and paying off Kenya’s debt.

Despite the opposition, the Supreme Court has ruled in favor of the government, stating, “We hereby set aside the Court of Appeal’s finding declaring the entire Finance Act 2023 unconstitutional.” This decision allows the government to continue collecting taxes under the 2023 law, after withdrawing this year’s finance bill due to the widespread protests.

President Ruto had delayed introducing a new finance bill, which has also delayed a disbursement from the International Monetary Fund (IMF). However, with the Supreme Court’s ruling, the IMF’s executive board is now set to review a new funding tranche on Wednesday, following Kenya’s compliance with the Fund’s requirements.

The reinstatement of the 2023 finance law is a significant win for President Ruto’s administration, which has been pushing for increased tax revenue to fund development projects and address Kenya’s debt. The decision is expected to have far-reaching implications for the country’s economy and will likely be closely watched by investors and international partners.

As the IMF reviews the new funding tranche, Kenya’s government will likely breathe a sigh of relief, knowing that it can continue to collect taxes and implement its development plans. However, the opposition is likely to remain vocal, and the country may still face protests and unrest in the coming days. One thing is certain – the Supreme Court’s ruling has paved the way for a significant shift in Kenya’s economic landscape.