Kenya’s Supreme Court has overturned an Appeals Court decision that previously invalidated the 2023 Finance Law, marking a significant legal victory for President William Ruto’s government. This ruling allows the administration to continue its tax collection efforts, which had been underpinned by the 2023 Finance Law following the withdrawal of this year’s finance bill in response to extensive public protests.
The Supreme Court stated, “We hereby set aside the Court of Appeal’s finding declaring the entire Finance Act 2023 unconstitutional.”
The 2023 Finance Law introduced a range of tax measures, including higher fuel taxes, a housing levy, and increased top-tier income tax rates, which met with strong opposition and fueled protests led by opposition leaders. The unrest in June and July led to over 60 fatalities, heightening public outcry and prompting Ruto to withdraw the current year’s bill temporarily. He maintains that the tax measures are essential for funding development initiatives and managing Kenya’s rising debt.
With Kenya’s adherence to the International Monetary Fund’s (IMF) guidelines, the IMF’s executive board is scheduled to review the next funding tranche on Wednesday, following Kenya’s compliance with these requirements.
