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Supreme Court Suspends Ruling on Finance Act 2023, Boosting Ruto’s Revenue Plans

FILE PHOTO: A fountain with a statue is seen outside the Supreme Court in Nairobi, Kenya, August 20, 2021.

In Summary:

  • Kenya’s Supreme Court has issued a “conservatory order” suspending the Court of Appeal’s judgment that declared the Finance Act 2023 unconstitutional.
  • This decision allows President Ruto’s administration to continue implementing the Act while the legal process unfolds, with a hearing scheduled for September 10 and 11, 2024.

In a significant development, Kenya’s Supreme Court has suspended the Court of Appeal’s recent judgment that had declared the Finance Act 2023 “fundamentally flawed” and “unconstitutional.”

The Supreme Court stated, “A conservatory order is hereby issued suspending and staying the declarations… issued in the Court of Appeal judgment.”

This ruling marks a substantial victory for President William Ruto’s administration, which has heavily relied on the Act to anchor its revenue collection strategies.

The Finance Act 2023 has been at the center of a legal tussle, with lower courts striking it down for not meeting the constitutional threshold during the legislation process.

The Supreme Court’s decision provides temporary relief to the government’s revenue collection plans, which have faced intense scrutiny, especially following the withdrawal of the Finance Bill 2024 after widespread protests.

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The Supreme Court has scheduled the consolidated appeal for a virtual hearing on September 10 and 11, 2024, marking the next critical phase in this high-stakes legal dispute.

The Court directed that the case be “mentioned before the Deputy Registrar” prior to the hearing dates.

This development allows the Ruto administration to proceed with implementing the Finance Act 2023 “while the legal process continues.”