Kenya’s Supreme Court has temporarily suspended the Court of Appeal’s ruling that deemed the Finance Act 2023 unconstitutional.
Following petitions from the Cabinet Secretary for the National Treasury and other appellants, Kenya’s Supreme Court has temporarily suspended the Court of Appeal’s decision on the Finance Act 2023.
This Act, which implemented new taxes and changes to existing tax regulations, has faced significant legal challenges.
Critics claim it was enacted without adequate public consultation and argue that certain provisions are unconstitutional.
The Supreme Court of Kenya has temporarily stayed the Court of Appeal’s decision to nullify the Finance Act 2023, which had been invalidated due to alleged legislative process violations and insufficient public consultation.
This suspension will remain in effect until the Supreme Court resolves the pending consolidated appeals.
“A conservatory order is issued suspending and staying the declarations in Orders iii, iv, vi, vii, and ix(i) from the Court of Appeal judgment dated July 31, 2024, in Civil Appeals Nos. E003, E016, E021, E049, E064, and E080 of 2024 (Consolidated), pending the hearing and determination of the consolidated appeal before this court,” A rulling from Supreme Court stated.
The Supreme Court’s ruling takes into account the potential disruption to government operations and revenue collection caused by the Court of Appeal’s decision. It also considers the need to preserve budgetary stability while the appeals are reviewed.
This ruling allows the government to continue enforcing taxes under the Finance Act 2023 for now.
However, the Act’s ultimate fate is still uncertain, with the Supreme Court’s final decision poised to impact the nation’s tax system and legislative processes.
The consolidated appeals are scheduled for hearing on September 10 and 11, 2024, with significant interest from legal experts, policymakers, and the public.
What implications does this have for taxpayers?
For taxpayers, the Supreme Court’s ruling means that the taxes imposed by the Finance Act 2023 will remain in effect for now, as the Court of Appeal’s decision declaring the Act unconstitutional has been put on hold.
The ultimate fate of these taxes is still pending, as the Supreme Court has yet to deliver its final judgment on the appeals.
If the Court of Appeal’s ruling is eventually upheld, it could significantly impact government revenue and public expenditure.
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