Court Lifts Orders Halting Implementation of Finance Act

The Court of Appeal on Friday lifted orders prohibiting the execution of Finance Act 2023.

Justice Mohammed Warsame ruled that the appeal filed by Treasury CS Njuguna Ndung’u had merit.

“The upshot of our decision is that the application has merit and the same is allowed as prayed with the effect that the order made on July 10, 2023 suspending the Finance Act 2023, and the order prohibiting the implementation of the Finance Act 2023, be and is hereby lifted pending the hearing and determination of the appeal. Costs shall abide the outcome of the appeal,” read the ruling in part.

Read: Court of Appeal Declines to Issue Orders Suspending Implementation of Finance Act 2023

The State had asked for the orders suspending the Finance Act to be dropped because it was unclear what would happen to the Legislature, Executive, and Judicial arms of government during its suspension.

The Attorney General’s office and CS Ndung’u stated that the directives would put the government in a fix over raising taxes and approving expenditures.

The State claimed in their appeal to the appellate court that if the conservatory orders were not lifted, the country would suffer irreparable harm.

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But one of the petitioners, Busia Senator Okiya Omtatah, argued that taxes cannot be reimbursed. He cited the 16% fuel tax which was enacted despite orders halting the implementation.

The judge declared that, in the exercise of his discretion, the court may take into account suspending some provisions whose execution has an irrevocable effect and cannot be reimbursed, but not the entirety of the Act.