In a significant turn of events, the Court of Appeal has overturned an order suspending the implementation of the Finance Act, 2023. The ruling, delivered by Justices Mohamed Warsame, Kathurima M’Inoti, and Hellen Omondi, came on Friday, July 28, 2023, and has implications for the Kenyan government’s budget and tax plans.
The court stated that the applicants challenging the Act had satisfied the necessary principles for granting the orders they sought. Furthermore, the judges emphasized that the public interest favored setting aside the conservatory orders made by the trial judge.
As a result of the decision, the suspension of the Finance Act 2023, which had been in place since July 10, 2023, has been lifted until the appeal is heard and determined. This ruling will allow the National Treasury’s plan to raise additional taxes to implement the Ksh3.6 trillion budget.
The legal challenge against the Finance Act, brought by Busia Senator Okiya Omtatah and six others, argued that the Act was unconstitutional. They argued that there was no concurrence of both Speakers of the National Assembly and Senate on matters related to counties. Additionally, they claimed that the Finance Bill’s tabling and approval had not followed the required procedure.
The suspension of the Finance Act had raised concerns about its impact on government operations. Treasury Cabinet Secretary Njuguna Ndungu pleaded with the court, warning of a potential budgetary crisis if the Act remained suspended.
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The Court of Appeal’s decision marks a significant win for the government, particularly President William Ruto, who had appealed against the suspension through the Treasury Cabinet Secretary. The judges noted that failing to grant a stay of the conservatory orders would have serious irreversible economic consequences.
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The appeal will now proceed for hearing and determination within a time-frame of 60 days. The lifting of the suspension paves the way for the implementation of the Finance Act 2023, despite the ongoing legal challenge.
FAQs
What is the Finance Act, 2023?
The Finance Act, 2023, is a crucial piece of legislation that outlines financial policies and provisions for the country. It plays a significant role in shaping the nation’s economy and public finances.
Why was the Finance Act, 2023, suspended initially?
The Finance Act, 2023, was initially suspended due to a legal challenge brought forward by several petitioners, who raised concerns regarding its constitutionality and procedural aspects.
What was the Court of Appeal’s ruling on the Finance Act, 2023?
The Court of Appeal set aside the order suspending the Finance Act, 2023, and allowed its implementation pending the hearing and determination of the appeal.
Who were the petitioners challenging the implementation of the Finance Act, 2023?
The petitioners included Busia Senator Okiya Omtatah, Eliud Matindi, Michael Otieno, and four others.
How will the implementation of the Finance Act, 2023, affect government operations?
The implementation of the Finance Act, 2023, is expected to positively impact government operations, as it will enable the smooth execution of financial policies and provisions.
