Judicial Denial: Government Finance Act Request Rejected
The Court of Appeal declined to issue interim orders suspending the High Court’s ruling that halted the implementation of the Finance Act 2023.
On Thursday, July 20, the State, through former Attorney General Githu Muigai, petitioned the Court of Appeal to lift the conservatorship orders issued by Judge Mugure Thande.
The appellate judges, Justice Mohammed Warsame, Kathurima M’Inoti, and Hellen Omondi, have instead ordered the court to issue a decision on Friday, July 28.
The government desired the conservatory orders to be lifted so that the Finance Act could be implemented pending an extended bench appointed by Chief Justice Martha Koome to determine its legality.
Justice Mugure Thande of the High Court prohibited Treasury Cabinet Secretary Njuguna Ndung’u and Attorney-General Justin Muturi from implementing the Act until the outcome of a case filed by Senator Okiya Omtatah of Busia.
In his petition to rescind the conservatory orders, Attorney Githu Muigai argued that the High Court’s handling of the case was improper and that the court committed judicial overreach in issuing its ruling.
In addition, Githu argued that the High Court violated the separation of powers by suspending the implementation of the Finance Act.
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If Omtatah’s petition is denied, the government may move to recover the tax accrued between July 1, 2023, when the Act was scheduled to take effect, and the date the verdict is rendered, according to State attorney Kiragu Kimani.
Omtatah, in its petition for suspension of the Act, argued that it contained amendments that impeded Senators’ ability to protect county interests.
Before passing the Finance Bill 2023, which President William Ruto signed into law, he had claimed that the National Assembly had neglected to consult the Senate.
However, the State countered his argument by informing the court that the National Assembly constitutionally passed the Act as a spending measure that did not require Senate approval.
Omtatah, in rebuttal, accused the government of derision, emphasizing that it had already disregarded the suspension of the 16 percent Value-Added-Tax (VAT) on petroleum products after the 30 June 2023 increase in fuel prices.
Thus, pursuing an appeal with the Court of Appeals may appear to be a mockery of justice.
In other news, Chief Justice Martha Koome appointed Justices David Majanja, Lawrence Mogambi, and Christine Meori to hear and determine the legality of the Finance Act on Thursday, July 18.
The opposition, the Kenya Conference of Catholic Bishops (KCCB), and other activists, on the other hand, want President Ruto to repeal the Act.
Judicial Denial: Government Finance Act Request Rejected