Supreme Court Dismisses Omtatah’s Bid To Stop Implementation Of Finance Act 2023
The Supreme Court has denied Senator Okiya Omtatah of Busia’s petition challenging the Court of Appeal’s decision to withdraw injunctions against implementing the Finance Act 2023.
The Court of Appeal lifted a High Court order prohibiting the implementation of the Finance Act last month after the Treasury argued that the country stands to lose more than $500 million per day in revenue.
As a result of the court’s decision, the Treasury will continue to collect the new taxes contained in the Finance Act 2023, including the amended Value-Added Taxes and Housing Levy.
“The four sets of written submissions filed out of time by the applicants on 15th August 2023 on the Court’s online platform be and are hereby struck out,” the judgment read in part.
“The responses and/or submissions filed out of time by the 1st, 2nd, 3rd, 4th, 5th, 8th, and 9th respondents be and are hereby struck out. The applicants’ Notice of Motion dated 5th August, 2023 be and is hereby dismissed. There shall be no orders as to costs.”
In their reasoning, the Judges stated that suspension of the Act, as observed by the Court of Appeals, would have detrimental effects on the economy and the general public.
Supreme Court also noted that Omutatah misunderstood the tenor of this Court’s Bia Tosha 2020 decision, which was widely cited as the basis for the appeal.
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“It is important to clarify that this Court in the said decision did not pronounce itself on any exceptional or unique circumstances that would warrant it to entertain an appeal emanating from Rule 5(2)(b) as alluded by the applicants.
“The appeal also did not arise from an order made under Rule 5(2)(b) and we reiterated the settled position that this Court lacks jurisdiction to entertain an appeal arising from the exercise of the Court of Appeal’s discretion under the said Rule,” the court ruled.
The judges also noted that they were guided by the principle of public interest, given that the issue at hand involved a large number of individuals, the vast majority of whom were not parties to the case.
“The appeal also did not arise from an order made under Rule 5(2)(b) and we reiterated the settled position that this Court lacks jurisdiction to entertain an appeal arising from the exercise of the Court of Appeal’s discretion under the said Rule,” the court ruled.
Prof. Njuguna Ndung’u, the Treasury Cabinet Secretary, argued in court through State Counsels that the government would lose 500 million shillings per day as a result of the suspension.
Friday, July 28, the Court of Appeal lifted orders prohibiting the implementation of Finance Act 2023, prompting Omutatah to petition the Supreme Court.
Supreme Court Dismisses Omtatah’s Bid To Stop Implementation Of Finance Act 2023
