The High Court’s indefinite suspension of the Finance Act, 2023 is a major setback for President William Ruto’s government as it cannot begin to implement its programmes. On Monday, the court declined to lift its order barring the implementation of the Kenya Kwanza Alliance administration’s first Budget.
Although somewhat of a relief to the people, who had complained about the tax proposals, the government has been left in limbo as it cannot raise the revenues it needs to actualise its financial plans.
To be able to deliver services to the people, the government needs the taxes it has stipulated in the Act. However, Kenyans are still paying income tax and import duty, the exception being the new taxes and levies.
The court’s extension of the suspension of the Budget has fuelled confusion over the fate of the taxes unlawfully collected by the government since the initial suspension, which matter was being heard in a separate case yesterday.
In declining to lift the suspension, Judge Mugure Thande stated that it would be unfair to subject Kenyans to taxes that might eventually be found to be unlawful. It is, therefore, in the interest of justice that the matter is given due attention and fairly resolved. We have a competent judicial system that arbitrates in disputes. When the verdict is finally in, all the weighty issues should have been considered and it will be legally sound and, therefore, justifiable and not, as the judge put it, “a mere academic exercise”.
This is an opportunity for the petitioners and the government to exhaustively argue their cases based on the law. It would be a miscarriage of justice if the government’s wish was granted only for the new law to be later found unconstitutional.
This is precisely why the court has asked Chief Justice Martha Koome to appoint a bench of more than two judges to determine the petition, which the High Court agreed has raised substantial questions of law.
It is in every Kenyan’s interest that the Judiciary speeds up the hearing and determination of this petition.
