The Supreme Court of Kenya has overturned the Court of Appeal's ruling that had nullified the Finance Act 2023 and declared it unconstitutional. In the ruling, a seven-judge bench, led by Chief Justice Martha Koome, stated, We hereby set aside the Court of Appeal's declaring the entire Finance Act 2023 unconstitutional. The Finance Act 2023, which included high fuel taxes, higher income tax rates for top earners and a housing levy, sparked deadly nationwide protests and unrest in June and July. ALSO READ: Kenya: Protests persist despite withdrawal of Finance Bill 2024 President William Ruto, in response, withdrew the Finance Act 2023, leaving the government relying on the 2022 law to continue tax collection. The judges also ruled that the public participation process was lawfully conducted, and Parliament was not required to undertake fresh public participation. “Bearing in mind the time-sensitive nature of a Finance Bill, it is unreasonable to require, or subject amendments intended to give effect to proposals and suggestions from a public participation exercise to another fresh round of public participation,” the Supreme Court said in its ruling. ALSO READ: President Ruto announces austerity measures This decision follows an appeal filed by the government, including the Attorney General (AG), the Cabinet Secretary for Treasury, the National Assembly, and the Kenya Revenue Authority (KRA), against the Court of Appeal’s judgment declaring the Finance Act 2023 unconstitutional. The Supreme Court ruling has been termed a 'big win' for the government which can now proceed with its 2023/2024 budget.
