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

The Court of Appeal has upheld the High Court’s decision to halt the Finance Act’s execution.

On Thursday, the Appellate court declined to give temporary orders staying the lower court’s ruling.

The State had through former Attorney General Githu Muigai appealed Judge Mugure Thande’s conservatory orders.

But Justices Mohammed Warsame, Kathurima M’Inoti, and Hellen Omondi, instead ordered that the court will issue a decision on July 28.

Read: High Court Declines to Lift Orders Barring Implementation of Finance Act

The State wanted the conservatory orders lifted so that the Finance Act could be implemented, pending the determination of its legality by a three-judge bench appointed by Chief Justice Martha Koome on Wednesday.

The three are: Justices David Majanja, Lawrence Mogambi and Christine Meori

Muigai contended that the High Court handled the case improperly and that the court overreached in making the judgement in his plea to lift the conservatory orders.

He also asserted that by postponing the Finance Act’s execution, the High Court had breached the doctrine of the separation of powers between Parliament, the Judiciary, and the Executive.

Read Also: Omtatah Warns EPRA Against Disregarding Court Order on Finance Act

If Busia Senator Okiya Omtatah’s petition is denied, the government may take legal action to recoup the tax that accrued between July 1, 2023, the date the Act was meant to go into effect, and the date the judgment would be rendered, lawyer Kiragu Kimani, who is also representing the State, said.

Omtatah contended that the Act’s amendments undermined senators’ obligations to safeguard the interests of counties. Prior to the National Assembly passing the Finance Bill 2023 and President William Ruto signing it into law, the lawmaker had alleged that the Senate had not been consulted.

The State responded to his claim, telling the court that the National Assembly had lawfully enacted the Act as a finance bill.

In response, Omtatah accused the government of contempt, pointing out that it had already disregarded the suspension of the 16% Value Added Tax (VAT) on petroleum goods after raising fuel prices on June 30.