Nairobi – Kenya’s Supreme Court on Tuesday issued a temporary reprieve to the government by suspending a lower court’s ruling that invalidated the 2023 Finance Act. The court emphasized the need to maintain budgetary stability while the government’s appeal against the earlier decision is heard next month.
The 2023 Finance Act, which has been a subject of intense public and political debate, introduced contentious measures such as increased fuel taxes, a housing levy, and higher income tax rates. The law has been a cornerstone of President William Ruto’s revenue-raising strategy to address the country’s burgeoning debt and fund development projects.
The Court of Appeal’s decision last month to declare the 2023 Finance Act unconstitutional dealt a significant blow to the government, which had already withdrawn this year’s finance bill amid widespread protests.
With the Supreme Court’s ruling, the government can continue collecting taxes based on the 2023 law until the final determination of the case. The court is set to hear the appeal in September.
