Kenya: Finance Act Declared Constitutional By Supreme Court

The Supreme Court has overturned a Court of Appeal (CoA) decision that had declared the Finance Act 2023 unconstitutional.

The seven-judge bench, led by Chief Justice Martha Koome, ruled that Parliament adhered to public participation requirements when drafting the Finance Bill.

This judgment follows the CoA’s earlier ruling, which had deemed the Act unconstitutional due to insufficient public participation.

While the apex court ruling represents a setback for Kenyans facing increased taxation, it is a victory for the government in its effort to raise revenue through new tax measures.

The Finance Act 2023, signed into law by President William Ruto in June 2023, introduced a Housing Levy requiring a 1.5 percent contribution from employees, matched by employers, to fund affordable housing.

It also raised the value-added tax (VAT) on fuel from 8 percent to 16 percent, contributing to a rise in fuel prices, among other changes.

This story originally appeared on Capital FM.