Appeals Court clears the way for implementation of the Finance Act » Capital News

NAIROBI, Kenya Jul 28 – The Court of Appeal has lifted a conservatory order on the Finance Act, paving the way for its implementation.

This is a major reprieve for President William Ruto whose government which was facing challenges on spending since the new financial year started this month.

Justices Mohamed Warsame, Kathurima M’inoti and Hedwig Omondi observed that there will be irreversible economic consequences if the order is not lifted.

“The upshot of our decision is that the application has merit and the same is allowed as prayed with the effect that the order made on 10th July 2023 suspending the Finance Act 2023, and the order prohibiting the implementation of the Finance Act 2023, be and is hereby lifted pending the hearing and determination of the appeal,” the judges ruled Friday.

The judges, however, allowed the appeal by Treasury Cabinet Secretary Njuguna Ndungu who said the suspension of the Act was affecting government operations.

The judges have ruled that the act cannot be suspended indefinitely given the effects it will have on taxation and government spending that is already crippled.

In their ruling, the judges, however, said all the parties shall abide by the final outcome of the appeal.

The order suspending the Finance Act was obtained by activist Okiya Omtatah who filed a case in the High Court, describing it as punitive on Kenyans since it seeks to raise taxes that will raise the cost of living.

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