Government Fights to Save Finance Act 2023 Amid Constitutional Challenge at Supreme Court
On Tuesday, the government mounted a robust defense at the Supreme Court in an effort to save the Finance Act 2023 after the Finance Bill 2024 was rejected, forcing a reversion to the previous law.
The Court of Appeal nullified the 2023 Bill on July 31, ruling it unconstitutional due to the lack of public consultation on several key sections.
Represented by the Treasury and National Planning Cabinet Secretary (CS), the Attorney General (AG), the National Assembly, its Speaker, and the Kenya Revenue Authority (KRA), the appellants contended through their legal team that sufficient public input had been gathered on the 2023 Act, challenging the appellate court’s conclusion.
“If the Court of Appeal ruling is upheld, tax collection will be severely impacted,” argued Prof. Githu Muigai, speaking on behalf of the AG and Treasury CS.
National Assembly lawyer Issa Mansour argued that parliamentary procedures allow the introduction of new amendments to bills during the committee stage or the Committee of the Whole House without the need for further public consultation.
“The National Assembly took into account all submissions, including those repeated by different individuals or organizations, whether presented in person or via email,” Mansour added.
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KRA and the National Treasury warned that the government could lose Ksh.214 billion in revenue if forced to revert to the Finance Act 2022.
Additionally, the government has already reported a Ksh.346 billion revenue loss after the Finance Bill 2024 was rejected.
Meanwhile, the 53 respondents, led by Busia Senator Okiya Omtatah, insisted that the law was flawed and unconstitutional, as it was passed without adequate public input, and even the gathered views were ignored.
“The Act violated Article 220 of the Constitution,” Omtatah stated.
Court of Appeal judges Kathurima M’Inoti, Agnes Murgor, and John Mativo ruled that sections of the bill, which amended laws like the Income Tax Act, VAT Act, Excise Duty Act, Retirement Benefits Act, and Export Processing Zones Act, were unconstitutional because they bypassed the required public participation process.
The extended hearing is set to wrap up tomorrow, with more respondents expected to argue why the Finance Act 2023 should be invalidated.
Government Fights to Save Finance Act 2023 Amid Constitutional Challenge at Supreme Court
