In Summary:
In a groundbreaking decision, a three-judge bench comprising Justices David Majanja, Christine Meoli, and Lawrence Mugambi ruled the Finance Act 2023 unconstitutional. The verdict, prompted by a petition from Busia Senator Okiya Omtatah, challenged the Finance Act’s legitimacy, alleging inadequate Senate approval. Despite the Finance Bill being deemed a legal money bill, the court nullified the Housing Levy, asserting unconstitutional powers vested in the Kenya Revenue Authority, as argued by the petitioners.
This judicial intervention not only suspended the implementation of the Social Health Insurance Act until 2024 but also dealt a significant blow to Deputy President William Ruto. The court’s decision unfolds against the backdrop of the ongoing struggle between the Kenya Kwanza and Azimio factions in the National Dialogue Committee, failing to reach a consensus on fuel tax and the Housing Levy removal.
Gachagua Responds to Housing Levy Suspension:
Deputy President Rigathi Gachagua has broken his silence on the court’s removal of the Housing Levy. Expressing profound respect for the judiciary, Gachagua urged judicial restraint, making a plea for judges not to sabotage the Housing Levy removal and to allow President William Ruto to continue with his policy agenda.
As the Finance Act faces legal upheaval, Gachagua’s plea underscores the political tensions surrounding the judiciary’s role in shaping economic policies.
The nation remains on edge, awaiting the resolution of critical financial legislation and anticipating the broader implications for the political landscape.