Raila Odinga Sues President Ruto Over Burdensome Finance Act 2023
On Tuesday, July 4, former Prime Minister Raila Odinga filed a lawsuit against President William Ruto over the Finance Act 2023, alleging that it imposes an undue burden on taxpayers.
The lawsuit filed at the High Court in Nairobi is the opposition’s latest attempt to compel President Ruto to comply with its demand.
Raila and his Azimio la Umoja Coalition asserted, through his attorney Paul Mwangi, that the law’s increase in taxes on essential goods and services, such as food, fuel, and electricity, violated the fundamental rights of consumers.
“The Petitioner asserts that section 84 of Finance Act No. 4, 2023, which amends the Employment Act, 2007, by inserting a new section immediately after section 31A requiring an employer to pay an Affordable Housing Levy, is unconstitutional insofar as the National government seeks to implement and develop housing-related matters.
“The Petitioner asserts that the Constitution’s fourth schedule on the distribution of functions between the national government and the county governments, part 1, No. 20 stipulates that the National Government is responsible for formulating a housing policy, while part 2, No. 8 (d) of the same schedule stipulates that the county government is responsible for the provision of housing; therefore, section 84 of the Finance Act, 2023 is unconstitutional because the National Government is not responsible for formulating the housing policy.”
The leader of Azimio la Umoja also claimed that President Ruto had usurped the authority of Governors and County Governments through the use of the law.
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Therefore, he urged the High Court to safeguard devolution by striking down the contested provision of the Finance Act 2023.
“The Petitioner further states that section 2 of Finance Act No. 4 of 2023 is unconstitutional insofar as the National Government imposes a tax on entertainment, which is a function of county government,” the petition stated in part.
Raila seeks a court order declaring sections of the Finance Act 2023 unconstitutional and nullifying them, as well as compelling the government to cover the petition and litigation costs.
Azimio Prayers
- A declaration that the Finance Act of 2023 was passed unconstitutionally because it involved county government functions and the Speaker of the National Assembly should have referred it to the Speaker of the Senate by Article 110(4) of the Constitution.
- A declaration that section 84 of the Finance Act, 2023, which requires an employer to collect and pay into the National Housing Development Fund, is unconstitutional because it authorizes the National Government to raise tax and undertake a function in contravention of the fourth schedule, Part 1, Paragraph 20 of the Constitution, which states that the National Government is only responsible for proposing housing policy, and Part 2, Paragraph 8 (d), which states that the county government is responsible for implementing the housing policy.
- A declaration that section 2 of the Finance Act 2023 is unconstitutional insofar as the National Government imposes a tax on entertainment, contrary to Article 209 of the Kenyan constitution, which states that only county governments may impose such taxes.
- A declaration that section 33 of the Finance Act 2023, which imposes a value-added tax on insurance compensation, is unconstitutional because it violates Article 40 of the Constitution.
- An order awarding the Petition’s costs to the Petitioner.
- Other appropriate relief that the court deems justifiable.
Raila Odinga Sues President Ruto Over Burdensome Finance Act 2023