Court Suspends Implementation of Ruto's Finance Act

On Friday, June 30th, Judge Mugure Thande of the High Court issued conservatory orders suspending the implementation of the Finance Act 2023. 

This was in response to a petition submitted by Busia Senator Okiya Omtatah, which asked the court to delay the tax hikes before the case could be heard. The court interim order prohibits respondents and all relevant parties from giving effect to the Finance Act. Justice Thande commanded that the petitioner provide all parties, including Treasury CS Njuguna Ndung'u, with a copy of the petition by the end of the day. 

"I am satisfied that the Application meets the test for conservatory orders and I do grant prayers 2 and 3 of the Application until July, 5 when the matter is scheduled for mention for directions.  Pending the hearing and determination of the application and/or the Petition, the Honourable Court be pleased to issue a conservatory order suspending the Finance Act, 2023," read part of the ruling.  

The respondents have until Tuesday, July 4 to submit their responses. The petition specifically contests the constitutionality of certain elements of the Finance Act, such as the increase of the Value Added Tax on petroleum products, the 3% Housing Levy, the tax on digital content creation, and the alterations to the tax regime for mobile money operators. 

Omtatah celebrated the suspension of the Finance Act as an accomplishment for activists and Kenyan taxpayers, who will not have to endure the increased VAT and other adjustments to the taxation system. Speaking after the ruling, the Chairman of the Finance and National Planning Committee in the National Assembly, Kuria Kimani,  declared that the protective orders will remain in place until the case is concluded. He also suggested that the ruling is a detriment to the government's plan, implying that some people had ulterior motives towards the government.