Win For Ruto's Revenue Plans As Supreme Court Suspends Court Ruling Nullifying Finance Act 2023

• The Supreme Court has issued conservatory orders suspending the Court of Appeal's judgment that had declared the Finance Act 2023 unconstitutional
• The Court of Appeal had earlier upheld a High Court ruling that the Finance Act 2023 was unconstitutional due to insufficient public participation in the legislative process
• The Supreme Court's suspension of the lower court's ruling allows the government to continue implementing the Finance Act 2023 as legal proceedings move forward

Elijah Ntongai, a journalist at TUKO.co.ke, has more than three years of financial, business, and technology research expertise, providing insights into Kenyan and global trends.

The Supreme Court has granted conservatory orders, effectively suspending the Court of Appeal's judgment that declared the entire Finance Act 2023 "fundamentally flawed" and "unconstitutional."

This ruling comes as a considerable victory for President William Ruto's administration, which has heavily relied on the Finance Act 2023 to anchor its revenue collection strategies since the withdrawal of the Finance Bill 2024.

The Finance Act 2023 had been struck down by the Court of Appeal which upheld a ruling by the High Court that the legislation process did not meet the constitutional threshold.

Supreme Court's ruling

The Supreme Court's latest order has stayed this specific directive, allowing the Ruto administration to proceed with implementing the Finance Act 2023 while the legal process continues.

"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 31 July, 2024 in Civil Appeals Nos. E003, E016, E021, E049, E064 & E080 of 2024 (Consolidated) pending the hearing and determination of the consolidated appeal before this Court," the Supreme Court ruled.

The apex court's decision to suspend the lower court's ruling provides temporary relief to the government's revenue collection plans, which have been under intense scrutiny.

The Supreme Court has scheduled the consolidated appeal for mention before the deputy registrar, and the case will be heard virtually on September 10 and 11, 2024, marking the next crucial phase in this high-stakes legal tussle.

Why Finance Act 2023 was declared unconstitutional

Earlier, TUKO.co.ke reported that the Appellate Court declared the Finance Act 2023 unconstitutional due to a lack of public participation, among other issues.

The court found that the legislative process leading to Finance Act 2023 failed to provide sufficient opportunities for public input, violating constitutional mandates.

It emphasised that the National Assembly must allow the public to express their views and provide clear reasons for adopting or rejecting these proposals during the legislative process.

Proofreading by Mercy Nyambura Guthua, journalist and copy editor at TUKO.co.ke