Relief for Ruto, Supreme Court Overturns Decision to Overturn Finance Act, 2023

  • The Supreme Court has issued conservative orders to stay the judgment of the Court of Appeal that had declared the Finance Act 2023 unconstitutional.
  • The Court of Appeal initially accepted the decision of the High Court that the Finance Act 2023 was unconstitutional due to the lack of public participation in the law-making process
  • The Supreme Court's suspension of the lower court's decision allows the government to continue implementing the Finance Act 2023 while the legal process continues

The Supreme Court has given conservative orders, effectively staying the judgment of the Court of Appeal that declared the entire Finance Act 2023 “deeply flawed” and “unconstitutional.”

Chief Justice Martha Koome (l) and President William Ruto (r) in previous events. Photo: @Kenyajudiciary/William Ruto.
Source: Twitter

This decision comes as a great victory for the President's administration William Rutowhich has relied heavily on the Finance Bill 2023 to underpin its revenue-raising strategies since the withdrawal of the 2024 Finance Bill.

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The Finance Act 2023 was thrown out by the Court of Appeal which upheld the High Court's decision that the legislative process did not meet the constitutional standard.

The decision of the Supreme Court

The latest Supreme Court order has struck down this particular order, allowing the Ruto administration to continue with the implementation of the Finance Act 2023 while the legal process continues.

“The conservatorship order is issued by suspending and terminating the resolutions in Orders iii, iv, vi, vii & ix(i) issued in the judgment of the Court of Appeal dated July 31, 2024 in Civil Appeal No. E003, E016, E021, E049, E064 & E080 of 2024 (Consolidated) pending hearing and determination of the consolidated appeal before this Court,” The Supreme Court ruled.

The Supreme Court's decision to stay the lower court's decision provides temporary relief to the government's revenue collection plans, which have come under intense scrutiny.

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The Supreme Court has scheduled a consolidated appeal for mention before the deputy registrar, and the case will be heard around September 10 and 11, 2024, marking the next important phase in this legal dispute.

Why the Finance Act 2023 was declared unconstitutional

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

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

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

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Source: TUKO.co.ke